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NEW QUESTION: 1
Which of the following decreases stockholder equity?
A. Investments by owners.
B. Issuance of stock.
C. Acquisition of assets in a cash transaction.
D. Distributions to owners.
Answer: D
Explanation:
Choice "b" is correct. Distributions to owners, typically in the form of dividends, will serve to reduce
stockholders' equity.
Choice "a" is incorrect. Investments by owners, typically in the form of stock purchases or contributions,
will serve to increase shareholders' equity.
Choice "c" is incorrect. Issuance of stock by sale will increase shareholders' equity, while issuance of
stock dividends will have no effect on total shareholders' equity. Stock dividends will reduce the book
value of each share outstanding.
Choice "d" is incorrect. Acquisition of assets with cash will have no effect on total stockholders' equity.
The acquisition of assets with cash will effectively reclassify assets from one type to another without
impacting liabilities or equity.

NEW QUESTION: 2

A. Option C
B. Option B
C. Option E
D. Option A
E. Option D
F. Option F
Answer: E,F

NEW QUESTION: 3
While Governor Verdant has been in office, the state's budget has increased by an average of 6 percent each year. While the previous governor was in office, the state's budget increased by an average of 11.5 percent each year. Obviously, the austere budgets during Governor Verdant's term have caused the slowdown in the growth in state spending.
Which of the following, if true, would most seriously weaken the conclusion drawn above?
A. During the previous governor's term in office, the state introduced several so-called "austerity" budgets intended to reduce the growth in state spending.
B. The rate of inflation in the state averaged 10 percent each year during the previous governor's term in office and 3 percent each year during Verdant's term.
C. During Verdant's term in office, the state has either discontinued or begun to charge private citizens for numerous services that the state offered free to citizens during the previous governor's term.
D. Both federal and state income tax rates have been lowered considerably during Verdant's term in office.
E. In each year of Verdant's term in office, the state's budget has shown some increase in spending over the previous year.
Answer: B
Explanation:
Explanation/Reference:
Explanation: