At the Quarterly Meeting of Tangshan Mining Corporation, Held on September

question 76

Multiple Choice

At the quarterly meeting of Tangshan Mining Corporation, held on September 10th, the directors declared a $1.00 per share dividend for the firm's 100,000 shares of common stock outstanding. The net effect of declaring and paying this dividend would be to ________.

• A) decrease total assets by $100,000 and increase stockholders equity by $100,000
• B) decrease total assets by $100,000 and decrease stockholders equity by $100,000
• C) increase total assets by $100,000 and increase stockholders equity by $100,000
• D) increase total assets by $100,000 and decrease stockholders equity by $100,000

Understand the principles underlying the calculation of gross and net profit margins.

Identify the differences between periodic and perpetual inventory systems.

Calculate gross profit, net profit, and profit margins from given financial information.

Understand the impact of inventory management and pricing strategies on a company’s financial performance.

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Definitions:

Complementary Resources

Resources that, when used in conjunction with another, enhance each other's value or productivity.

Tax Benefits

Advantages granted by the government to reduce one's tax liability.

Acquisition

The process of obtaining control of another company or asset through purchase or merger.

Antitrust Regulations

Laws and regulations designed to promote competition and prevent monopolies by prohibiting business practices that restrict or control trade and market dominance.