A100+Midterm%2BFall%2B2%2B2010

B when dividends are paid the amount paid reduces the

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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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This note was uploaded on 09/11/2012 for the course BUS 100 taught by Professor Mo during the Spring '08 term at Indiana.

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