Indicate Whether Each of the Following Statements About Equity Is

question 67

Short Answer

Indicate whether each of the following statements about equity is true or false.
________ a)Expenses decrease retained earnings.
________ b)stockholders' equity and liabilities can be viewed either as sources of assets or claims to assets of the business.
________ c)Retained earnings is increased by loans received from a bank.
________ d)Dividends paid to stockholders decrease common stock.
________ e)Generally,assets are reported at the actual price paid for them when purchased regardless of subsequent changes in market value.

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Definitions:

Direct Labour

Workers who are directly involved in the production of goods or services.

Variable Manufacturing Overhead

Costs that vary directly with the level of production output and can include expenses such as indirect materials and utilities.

Special Order Price

The price charged for goods or services that are offered or produced in response to a specific, often one-time, order.

Variable Selling Expense

Costs associated with selling a product that vary directly with the volume of sales.