Below Is the Common Equity Section (In Millions) of Fethe

question 14

Multiple Choice

Below is the common equity section (in millions) of Fethe Industries' last two year-end balance sheets: $\begin{array} { l r r } &2015&2014\\\text { Camman stock } & \$2,000 & \$1,000 \\\text { Retaned emring } & 2,000 & 2,340 \\\text { Tatal camman equity } & \$4.000 & \$3340\end{array}$
The company has never paid a dividend to its common stockholders. Which of the following statements is CORRECTσ

• A) the company's net income in 2014 was higher than in 2015.
• B) the company issued common stock in 2015.
• C) the market price of the company's stock doubled in 2015.
• D) the company had positive net income in both 2014 and 2015, but the company's net income in 2014 was lower than it was in 2015.
• E) the company has more equity than debt on its balance sheet.

Prepare and adjust financial records based on bank reconciliation findings, including recognizing NSF checks and bank errors.

Recognize the principles of internal control procedures and identify weaknesses in cash handling and recording practices.

Calculate discounts on sales and understand their impact on sales revenue and net income.

Understand the sales cycle and the recognition of revenue, including the effects of sales returns, discounts, and allowances on financial statements.

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Definitions:

Penalty On Early Withdrawal

A financial charge or loss imposed on an individual for withdrawing funds from an account before a specified date or maturity period.

Savings

Money set aside for future use, often held in bank accounts, investments, or other financial instruments.

Moving Expense Deduction

A tax deduction that was available to taxpayers who relocated for a new job or business location, subject to certain IRS guidelines (currently suspended except for active military under certain conditions).

Taxpayers

Individuals or entities that are required to pay taxes to a federal, state, or local government based on earned income, property ownership, or consumption.