OOOO 1.66 points Under the indirect method of cash flow statement preparation, accounts payable decreasing during the period tells cash payments for expenses were the same as the expenses reported on the income statement. Achange in accounts payable does not tell us anything about cash. cash payments for expenses were less than the expenses reported on the income statement. cash payments for expenses were more than the expenses reported on the income statement. 53 167 points On the cash flow statement, an example of a significant non-cash disclosure would be: payment of divdends paying cash for a piece of equipment. the issuance of common stock to pay for land. repaying a loan Science Co has 10,000s of $100 por Walue, noncumulative preferred stock outstand Each $100 shares a $6 dividend $100). The www dividend is Doo (10.COX 36 pers dividends have not been paid in two years, and the company as a total dividend to all stockholders) of $500,000 in the common stockholders are entitled to receive 0 $300,000 $0 $120. 3-440,000 43 167 points Reese Co. pays a cash dividend to its stockholders in the amount of $50,000. The payment of the dividend will cause total assets to increase total stockholders' equity to decrease total stockholders equity to increase. total liabilities to increase OOOO 44 167 points Brayden Copays a stock dividend of $50,000. The distribution of the dividend will cause a There is no change to assets, liabilities or stockholders equity in total decrease in total assets. increase in liabilities Increase in total expenses Science Co has 10,000 resolo $100 por anonimulative preferred stock outstanding bach $100 separys a $6 dividend 06 $1001. The was dividend is SODOO (1000X 36 pershare dividends not been paid in two years, and the company as a total dividend to all stockholders) of $500.000 in the third yw.com stockholders are entitled to rece $200 sa $320,000 $440,00 43 167 points Reese Co pays a cash dividend to its stockholders in the amount of $50,000. The payment of the dividend will cause total assets to increase. total stockholders' equity to decrease. total stockholders equity to increase total liabilities to increase. 44 167 pointe Brayden Co. pays a stock dividend of $50,000. The distribution of the dividend will cause a There is no change to assets, liabilities or stockholders' equity in total decrease in total assets. increase in liabilities. increase in total expenses Science Co has 10,000 resolo $100 por anonimulative preferred stock outstanding bach $100 separys a $6 dividend 06 $1001. The was dividend is SODOO (1000X 36 pershare dividends not been paid in two years, and the company as a total dividend to all stockholders) of $500.000 in the third yw.com stockholders are entitled to rece $200 sa $320,000 $440,00 43 167 points Reese Co pays a cash dividend to its stockholders in the amount of $50,000. The payment of the dividend will cause total assets to increase. total stockholders' equity to decrease. total stockholders equity to increase total liabilities to increase. 44 167 pointe Brayden Co. pays a stock dividend of $50,000. The distribution of the dividend will cause a There is no change to assets, liabilities or stockholders' equity in total decrease in total assets. increase in liabilities. increase in total expenses tan ICC 2.0 shared $5 prve como for $10.00 in capitalices of the will be credit for $10,000 Cow Stock will be credit to $10,000 Cash will be relied for $16000 CommerStock will be created for $100.000 1166 Firain Comissed 2,000 stures of its pw value canon stock in payment of its attorney's bill of $30,000. The bill was for services performed in the company incoporate rain should record this transaction by debitir The bill does not need to be recorded because no payment was involved Common Stock for $10,000 Legal Expense for $10,000 e Experte for $1,000 41 1 Catch Corp purchased 20.000 shares of its own par common stock at a cost of $14 per share on April 30, 2001 (sury stock). The entry to record the purchase of the treasury she would include a credit to O Treasury Stock in the amount of $200,000 Common Stock in the amount of $200,000 Cash in the amount of $280,000 Common Stock in the amount of $40.000 OOOO 1.67 Clanwithe Planet Ca. Borrow mowy to buy some newgonomes todos, Cleanthe borrow $ in 15 year fond more pole. To record the bar Ctenanthe should Credit Cash for $750,000 Center does not need to record anything until the fest punt is dus since this is a long-term borrowing det Mortgage Payable for $750,000 debit Cash for $750,000 35 1.67 points A company has a $500,000 30 year foued loan payable at an interest rate of 4%. Monthly loan payments are set at $2,387.06. For the first month's payment, the interest portion of the payment is $1.666.67. The entry to record the first month's loan payment assuming no previous accrual) would include a debit to Cash in the amount of $1,666.67. Interest Expense for $1.666,67 Cash in the amount of $2,387.08. O Loan Payable in the amount of $2.387.00 36 1.67 points The current ratio (current assets/current liabilities) is important because it tells us about the likelihood that a company will default on loan payments in future years. the amount of cash available to spend in the current period. a company's long term solvency, a company's ability to meet its short-term obligations