Assume That a Firm Had Shareholders' Equity on the Balance

question 21

Multiple Choice

Assume that a firm had shareholders' equity on the balance sheet at a book value of $1,600 at the end of 2010.During 2011 the firm earns net income of $1,300,pays dividends to shareholders of $600,and uses $300 to repurchase common shares.The book value of shareholders' equity at the end of 2011 is:

• A) $2,000
• B) $400
• C) $3,800
• D) $2,600

Recognize the importance of and strategies for avoiding new business failures.

Understand the operational principles of on-delay (TON) and off-delay (TOF) timers.

Identify the initiation conditions for various timers in PLC programming.

Comprehend the difference and application of retentive and nonretentive timers.

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Definitions:

Cost Method

An accounting method used to value inventory or investments, where the cost of the goods or the investment purchase price is the basis for the value on the balance sheet.

Long-term Investments

Generally, (1) investments in stocks and bonds of other companies that companies normally hold for many years, and (2) long-term assets, such as land and buildings, not currently being used in operations.

Marketable Equity Securities

Shares of publicly traded companies that can be bought or sold on stock exchanges or other financial markets.

Significant Influence

The capacity to affect the financial and operating policies of another entity without having full control over it, often through significant ownership.