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[answered] a company can typically finance through debt or equity. an


1.?a company can typically finance through debt or equity. an example of equity financing would be.

A.?TO ACQUIRE MORE INCOME PRODUCING ASSETS

B.?TO ACQUIRE MORE LONG TERM VS SHORT TERM LOANS

C.?TO SELL MORE SHARES OF STOCK


2.WHEN PAYMENTS ARE CASH DIVIDENDS IS MADE, THE TRANSACTION WOULD BE A


A.DEBIT TO DIVIDEND EXPENSE AND A CREDIT TO CASH

B. CREDIT TO DIVIDEND PAYABLE AND A CREDIT TO CASH

C.DEBIT TO DIVIDEND PAYABLE AND A CREDIT TO CASH


3.?Saturn co.purchases a used machine for $110,00 cash on January 2. The company predicts the machine will be used for five years and have a $10,000 salvage value. The depreciation method used by Saturn co. is straight line. On December 31, at the end of its fourth year in operation the machine was sold for $25,000. What was the effect of the sale?

A. There is a loss on the sale

B.?There is a gain on the sale

C.?There is no effect since the machine was sold prior to the five years the machine was expected to last.

 


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