Question
Q4 . Jackson corporation's balance sheet showed the following amounts: current liabilities, $2,800; bonds payable, $6,000; lease obligations, $2300. Total stockholder's equity was $7,500. The
Q4 . Jackson corporation's balance sheet showed the following amounts: current liabilities, $2,800; bonds payable, $6,000; lease obligations, $2300. Total stockholder's equity was $7,500. The debt to equity ratios is:
a) 0..67
b) 1.11 <-- this is wrong
c) 1.22
d)1.44
e) 1.67
Q5 Axle Corporation's balance sheet showed the following amounts: total assets, $240,000, current liabilities, $45,000; total liabilities, $90,000. The debt to equity ratio is:
a) 0.44 <-- this is wrong
b) 0.55
c) 0.60
d) 1.25
e)1.60
Q8 As a result of a stock split,
a) Stockholder's equity is increased.
b) The stockholder have a higher proportionate ownership of the company.
c) The par value of the stock is changed in reverse proportion as the stock split.
d) the market price of the outstanding stock is increasing because a split is evidence of a profitable company. <-- this is wrong
Q10 When the board of directors approves a dividend be paid to its shareholders in 30 days, the company should:
a) decrease net income by recording dividends expense and decrease cash
b) decrease net income by recording dividend expense and increase dividends payable.
c) Decrease retained earnings and decrease cash. <--- wrong answer
d) Decrease retained earning and increase dividends payable
I provided 4 questions sorry, but I really need the help on these 4. I appreciate the time helping me. Have a nice day.
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