Unformatted text preview: ows the amount of cash collected from customers during the current period. 11 Which of the following is NOT true regarding dividends?
a The company has the option of whether or not to pay dividends on common stock.
b When dividends are paid, the amount paid reduces the company's net income.
c When dividends are paid, they are a financing cash outflow for the company.
d Paying dividends is a way a company can transfer cash to its stockholders.
e All of the above are true. 12 Under normal circumstances, in what situation would Newly Formed Corporation record an expense for inventory?
a When Newly Formed purchases the inventory
b When Newly Formed pays for the inventory
c When Newly Formed sells the inventory if the customer pays at the time of sale
d When Newly Formed sells the inventory regardless of when the customer pays
e When Newly Formed receives payment for the inventory
13 Hallowed Company went into business on June 1, 2010. The company pays its employees $25,000 every Friday for work done that
week. The employees work Monda...
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- Spring '08
- Balance Sheet