Use the Following to Answer Questions

question 85

Essay

Use the following to answer questions
Indicate how each event affects the elements of financial statements.Use the following letters to record your answer in the box shown below each element.You do not need to enter amounts.Enter only one letter for each element.

-During the process of preparing the bank reconciliation,an employee for Heath Company discovered that Check #4261 for $65,used to pay an account payable,was recorded in the company books as $56.

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Definitions:

Profitability

A measure of how much profit a company generates relative to its revenue or assets.

Dividends Per Share

The amount of declared dividend for the year divided by the number of outstanding shares of the company's stock.

Common Stockholders

Individuals or entities that own shares of common stock in a company, granting them the right to vote at shareholder meetings and receive dividends.

Earnings Distribution

It is the way in which a company allocates its earnings among shareholders, reinvestment into the business, or other financial obligations.