Answer:
Option C: Influence the market price of the good as it sells
Explanation:
Market Power is simply when a firm is able to raise price above the equilibrium level by not and without losing all of its customers. It depends on largely on the closeness of substiutes.
A firm has market power if it can Influence the market price of the good as it sells to its customer and can regulate it when necessary.
What will happen to your taxes when you own a home?
a. I will pay more income taxes.
b. I may pay less in taxes because my mortgage interest is deductible.
c. There will be no change in my income taxes.
Answer:
A. I will pay more income taxes.
Sewtfi861 Corporation makes an extra large part to use in one its fabulous products. A total of 16,000 units of this extra large part are produced and used every year. The company's costs of producing the extra large part at this level of activity are below:
Per Unit
Direct materials $3.50
Direct labor $8.10
Variable manufacturing overhead $8.60
Supervisor's salary $4.00
Depreciation of special equipment $2.40
Allocated general overhead $7.60
An outside supplier has offered to make the extra large part and sell it to Sewtfi861 for $32.70 each. If this offer is accepted, the supervisor's salary and all of the variable costs, including the direct labor, can be avoided. The special equipment used to make the extra large part has no salvage value or other use. The allocated general overhead represents fixed costs of the entire Sewtfi861 company, none of which would be avoided if the part were purchased instead of produced internally. In addition, the space used to make the extra large part could be used to make more of one of the company's other fabulous products, generating an additional segment margin of $35,000 per year for that product.
Required:
What would be the annual financial advantage (disadvantage) for Sewtfi861 Corp. as a result of buying the extra large part from the outside supplier?
Answer:
Sewtfi861 Corporation
The annual financial disadvantage for Sewtfi861 Corporation buying the extra large part from the outside supplier would be:
$101,000.
Explanation:
a) Data and Calculations:
Cost implications:
In-house Outside
Production Production
Outside vendor's price $32.70
Direct materials $3.50
Direct labor $8.10
Variable manufacturing overhead $8.60
Supervisor's salary $4.00
Depreciation of special equipment $2.40 $2.40
Allocated general overhead $7.60 $7.60
Additional segment margin ($35,000/16,000) ($2.1875)
Total cost per unit $34.20 $40.5125
The annual financial disadvantage for Sewtfi861 Corporation buying the extra large part from the outside supplier would be 16,000 ($40.5125 - $34.20).
= $101,000
b) It looks better financially for Sewtfi861 Corporation to continue to make the large part in-house. If it goes ahead to buy the part from outside, it will suffer a total financial loss of $101,000 annually.
What economic problem did many countries face as a result of world war 2
Answer:
trade deficits, lack of investment capital, and wide gaps between rich and poor
Explanation:
List the 10 Strategic Points. These should align to one another to create a cohesive study. What is meant by alignment
Answer: Strategic points are Topic, background, statement, sample and location e.t.c
Explanation:
Alignment could be seen or described as when things add up or line up, or work together to meet a specific or same purpose.
The ten(10) Strategic Points are;
- Topic
- Background of the problem/gap
- Statement
- Sample and location
- Research questions
- Hypothesis
- Methodology and design
- Purpose statement
- Data collection
- Data analysis
Arthur is a California resident. He was ordered to pay $2,000 in alimony and $3,000 in child support to his former spouse. He meets all the requirements when paying his support. What amount can Arthur take as a deduction for these payments
Answer: $2000
Explanation:
Alimony is referred to as a financial support that is given to an individual when there is a divorce. This is usually an order from the court
Based on the question above, we should note that no amount should be removed from the child support as they're not deductible. Therefore, the amount that Arthur can take as a deduction for these payments would be $2000.
In order to evaluate risk, management may also set qualitative risk classes. Rank these four projects from least risky to most risky, all other things being equal. Completely new market in United States. Completely new market in South America. Addition to normal product line. Repair to old machinery.
Answer:
Ranking projects from least risky to most risky:
1. Repair to old machinery.
2. Addition to normal product line.
3. Completely new market in United States.
4. Completely new market in South America.
Explanation:
As can be seen from the above scenario, the risk profile increases as the company's activities move away from the known, controllable, and internal arenas to the unknown, uncontrollable, and external arenas. This implies that increasing uncertainty induces more risk.
Bonds Payable has a balance of $1,000,000 and Discount on Bonds Payable has a balance of $15,500. If the issuing corporation redeems the bonds at 98 1/2, what is the amount of gain or loss on redemption
Answer:
Loss on Redemption = $500
Explanation:
Gain or Loss on redemption:
Par value of Bonds $1,000,000
Less: Discount on bonds $15,500
Book Value of Bonds $984,500
Less: Redemption value $985,000 ($1,000,000 * 98.50%)
Loss on Redemption $500
True or False: Raising annual trend growth by 0.5 percentage points would do much more for the next generation than eliminating cyclical fluctuations around the trend
Answer:
False
Explanation:
The cyclical fluctuations around the trend may be higher than the 0.5 percentage points at which the annual trend growth is being raised. This implies that just raising the annual trend growth by a percentage point without due consideration of the cyclical fluctuation rates does not do much good for the next generation. Therefore, holistic consideration should be paid to all factors before final decision is taken.
A financial analyst discovers that Stark Industries has been inappropriately capitalising R&D costs in each year and amortizing them completely over a three-year period on a straight-line basis, beginning in the year after the cost was incurred. A total of $24m, $30m and $36m was inappropriately capitalised for fiscal years 2017, 2018 and 2019, respectively. At the financial year end of 30 June 2019, it had total assets of $280m. Net income was $20m for fiscal 2019. Ignore tax effects for this question.
Required:
a. Compute the amount of total asset and expense misstatement (over or understatement) in each period and provide your answer in the boxes provided below. Show all workings in the spaces provided.
b. Which other account(s), if any, will be mis-stated as a result of the above accounting treatment at the end of fiscal 2019?
c. Prepare the journal entries for correcting the misstatements that arise from the inappropriate capitalisation of R&D at the end of fiscal 2019. Note: Extra space for the journal entries has been provided below
Answer:
Stark Industries
a. Amount of total asset overstatement and expense understatement:
Total Asset and Expense Misstatements:
Assets Expenses
Overstatement Understatement
2017 $24m ($24m -$0) $24m
2018 $46m (24 -8 + 30)m $22m ($30m- $8m)
2019 $64m (46 -18 + 36)m $18m ($36m - $18m)
b. The Retained Earnings account will be misstated as a result of the above accounting treatment at the end of fiscal 2019.
c. Journal Entries:
June 30, 2019:
Debit R&D expense $82m
Credit Total assets $64m
Credit Amortization Expense $18m
To correct the R&D amortization and inappropriate capitalization.
Explanation:
a) Data and Calculations:
30 June 2019:
Total assets = $280m
Net income = $20m
Amortization R&D Amount
Expense Costs Capitalized
2017 $0 $24m $24m ($24m - $0)
2018 $8m $30m $46m ($24m - $8m + $30m)
2019 $18m $36m $64m ($46m - $18m + $36m)
Calculation of amortization expenses:
2017 R&D costs = $24m/3 = $8m
2018 R&D costs = $30m/3 = $10m
2019 R&D costs = $36m/3 =$12m
Waterway Industries has the following items at year-end:
Cash in bank $46500
Petty cash 550
Short-term paper with maturity of 2 months 9000
Postdated checks 2220
Waterway should report cash and cash equivalents of:_____.
A) $20,000.
B) $20, 300.
C) $25, 800.
D) $27, 200.
E) $21, 700.
Answer:
B $56,050
Explanation:
Cash and cash equivalents for water way is calculated as;
= Cash in bank + Petty cash + Short term paper with maturity of 2 months
Given that;
Cash in bank = $46,500
Petty cash = $550
Short term paper with maturity of 2 months = $9,000
= $46,500 + $550 + $9,000
= $56,050
Therefore, cash and cash equivalents for Water way is $56,050
Good internal controls over the write-off of uncollectible accounts include appropriate review of ________ by management to ensure the appropriateness of the transaction.
Answer: c. cash receipts journal
Explanation:
Good internal controls over the write-off of uncollectible accounts include the company reviewing the cash receipts journal to ensure that the uncollectible accounts should indeed be uncollectible by making sure that the customer has not paid their balance.
This is because there is a chance of fraud if the cash receipts are not checked as an employee might take the cash paid by a receivable and then record that the receivable is uncollectible.
"An investor expects a return of 14.7% on her portfolio with a beta of 1.13. If the expected market risk premium decreases from 8% to 7%, what return should she now expect on the portfolio?"
Answer:
13.57%
Explanation:
Calculation for what return should she now expect on the portfolio
Expected return = 14.7% + 1.13(7% − 8%)
Expected return = 14.7%+1.13(-1%)
Expected return = 14.7%-1.13
Expected return = 13.57%
Therefore the return she should expect now on the portfolio will be 13.57%
What is the yield to maturity (rounded to the nearest whole percent) of a 20 year, $100 par value bond, that pays a 10% coupon semi-annually, given that the bond's current market price is $85
Answer:
the yield to maturity is 12%
Explanation:
The computation of the yield to maturity is as follows
Given that
Future value is $100
Present value is $85
PMT = $100 × 10% ÷ 2 = $5
NPER = 20 × 2 = 40
The formula is given below:
= RATE(NPER;PMT;-PV;FV;TYPE)
The present value comes in positive
After applying the above formula, the yield to maturity is
= 6% × 2
= 12%
Hence, the yield to maturity is 12%
Suppose the Baldwin company shifts focus to only competing in the Thrift and Nano segments, while competing on price by reducing costs and passing the savings to the customers, what strategy would they be implementing?a. Broad cost leaderb. Broad differentiationc. Niche cost leaderd. Niche differentiation
Suppose the Baldwin company shifts focus to only competing in the Thrift and Nano segments, while competing on price by reducing costs and passing the savings to the customers, the strategy would they be implementing is Niche cost leader .Thus option (c) is correct.
What is Niche cost leader?A Niche cost leader strategy concentrates mainly on the traditional and low end segments of the market.
The company will gain a competitive advantage by keeping research and development, production and material costs to a minimum, enabling the company to compete on the basis of price, which will be below average.
Suppose the Baldwin company shifts focus to only competing in the Thrift and Nano segments, while competing on price by reducing costs and passing the savings to the customers, the strategy would they be implementing is Niche cost leader .Therefore, option (c) is correct.
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On January 1, 2021, Gundy Enterprises purchases an office building for $338,000, paying $58,000 down and borrowing the remaining $280,000, signing a 9%, 10-year mortgage. Installment payments of $3,546.92 are due at the end of each month, with the first payment due on January 31, 2021.
Required:
Record the purchase of the building on January 1, 2021.
Answer:
Dr Building $338,000
Cr Cash $58,000
Cr Notes Payable $280,000
Explanation:
Preparation of the journal entry to Record the purchase of the building on January 1, 2021.
Based on the information given we were told that Gundy purchases an office building for the amount of $338,000 which means that if they paid $58,000 down and as well borrowed the remaining amount of $280,000 the journal entry to Record the purchase of the building on January 1, 2021 will be :
Dr Building $338,000
Cr Cash $58,000
Cr Notes Payable $280,000
(Being purchase of building)
A firm is considering the purchase of a $500,000 machine for its business. The machine is expected to increase sales by $237,000. The machine will have a 5 year useful life and will be depreciated over 5 years via the straight line method. There is no salvage value. The firm has a required rate of return of 10% for all new capital investments. The project's pro forma income statement is shown below:
Sales $237,000
Total Cost 137,000
Depreciation 100,000
EBIT $0
Taxes 0
Net income $0
The firm should: ___________
a. Accept the project because the NPV is $2,543
b. Accept the project because the NPV is $10,011
c. Reject the project because the NPV is negative $120,921
d. Reject the project because the NPV is negative $500,000
e. It doesnt matter since the NPV is 0
f. Cant tell since there isnt enough information
Answer:
The firm should: ___________
c. Reject the project because the NPV is negative $120,921
Explanation:
a) Data and Calculations:
Pro Forma Income Statement:
Sales $237,000
Total Cost 137,000
Depreciation 100,000
EBIT $0
Taxes 0
Net income $0
Cost of machine = $500,000
Required rate of return = 10%
Annual revenue from new machine = $237,000
Annual operational costs = $137,000
Annual net cash flow = $100,000
Depreciation expense = $100,000
Annuity factor at 10% for 5 years = 3.791
PV Annuity of $100,000 = $100,000 * 3.791 = $379,100
NPV = $379,100 - $500,000 = $120,900
b) The Net present value of the project is $120,900 (the difference between the total present value of cash inflow of $379,100 and the initial cash outflow of $500,000).
Although the cost-plus method approach to product pricing may be used by management as a general guidance, when are some examples of other factors that managers should also consider in setting product prices?
Answer: value-based pricing.
Explanation:
Value-based pricing, in its literal sense, means basing pricing on the benefits of the commodity perceived by the customer rather than on the exact cost of making the product. For example, a painting may be priced much higher than canvas and painting prices: in fact, the price depends a lot on who the painter is.
If average demand for an inventory item is 200 units per day, lead time is three days, and safety stock is 100 units, the reorder point is:
Answer:Reorder point = 700 units
Explanation:
Reorder point (ROP) is the minimum quantity OF inventory that a business should have available in its stock before the inventory is replenished or reordered .
Given
average demand for an inventory item =200 units per day
lead time = three days,
safety stock = 100 units
We have that
Reorder point = (Average daily unit sales x Lead time ) + Safety stock
=( 200 x 3 )+ 100
600 + 100
= 700 units
The minimum quantity of inventory of a stock that a firm should have available before the inventory is replenished. The reorder point is 700 units.
Reorder point (ROP) :
It is the minimum quantity of inventory of a stock that a firm should have available before the inventory is replenished.
Reorder point = (Average daily unit sales x Lead time ) + Safety stock
Given Here,
Average demand for an inventory item = 200 units/day
Lead time = 3 days,
Safety stock = 100 units
Thus,
Reorder Point = ( 200 x 3 )+ 100
Reorder Point = 600 + 100
Reorder Point = 700 units
Therefore, the reorder point is 700 units.
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On December 1, Year 7, Gelt Corporation declared a dividend and distributed to its sole shareholder a parcel of land that was not an inventory asset. On the date of the distribution, the following data were available: Adjusted basis of land $ 6,500 Fair market value of land 14,000 Mortgage on land 5,000 For the year ended December 31, Year 7, Gelt had earnings and profits of $30,000 without regard to the dividend distribution. If the mortgage on the land was assumed by the sole shareholder, by how much should the dividend distribution reduce Gelt's earnings and profits
Answer:
The amount by which the dividend distribution should reduce Gelt's earnings and profits is $1,500.
Explanation:
The mortgage on the land was assumed by the sole shareholder, the amount by which the dividend distribution should reduce Gelt's earnings and profits can be calculated using the following formula:
Amount of expected reduction in Gelt's earnings and profits = Adjusted basis of land - Mortgage on land ................. (1)
Where;
Adjusted basis of land = $6,500
Mortgage on land = $5,000
Substitute the values into equation (1), we have:
Amount of expected reduction in Gelt's earnings and profits = $6,500 - $5,000 = $1,500
Therefore, the amount by which the dividend distribution should reduce Gelt's earnings and profits is $1,500.
what is Equity financing
Tara's company has launched a new style of lightweight running shoe. The company recently received some bad publicity. Tara is planning to
rebuild a strong relationship with her customers by Investing in techniques that improve the company's reputation and earn public goodwill.
Tara is looking to Improve her company's reputation through
__________
Incomplete question. The remaining part reads;
Identify the sales promotion technique based on the given scenario.
Answer:
Loyalty Points to Customers.
Explanation:
An important sales promotion technique that fits well into this technique is the sales promotion technique. This technique involves providing some incentives that motivate your aggrieved customers to reconsider coming back to you.
For example, Tara could offer her customers loyalty points which they can redeem as discounts for every pair of the new style of lightweight running shoe. By so doing, she may be able to regain the trust of her customers.
Company is a popular car-wash operation that measures its activity in terms of number of cars washed. Last month, the budgeted level of activity was 1,240 cars washed and the actual level of activity was 1,230 cars washed. The cost formula for the washing expenses is $4.80 per car washed plus $26,000 per month. The actual washing expense was $25,000.
Required:
What was the spending variance for the washing expenses last month?
Answer:
the spending variance is $6,904 favorable
Explanation:
The computation of the spending variance is as follows;
Budgeted Expense is
= 1,230 cars × $4.80 per car + $26,000
= $5,904 + $26,000
= $31,904
And, the actual expense is $25,000
Therefore, the spending variance is
= $31,904 - $25,00
= $6,904
Therefore, the spending variance is $6,904 favorable
Expenditures for major additions, improvements, flight equipment modifications and certain equipment overhaul costs are capitalized when such costs are determined to extend the useful life of the asset. Maintenance and repairs are charged to expense as incurred. Assume that FedEx made extensive repairs on an existing building and added a new wing. The building is a garage and repair facility for delivery trucks that serve the Denver area. The existing building originally cost $720,000, and by the end of 2010 (10 years), it was half depreciated on the basis of a 20-year estimated useful life and no residual value. Assume straight-line depreciation was used. During 2011, the following expenditures related to the building were made:
a. Ordinary repairs and maintenance expenditures for the year, $7,000 cash.
b. Extensive and major repairs to the roof of the building, $122,000 cash. These repairs were completed on December 31, 2011.
c. The new wing was completed on December 31, 2011, at a cash cost of $230,000.
Required:
a. Applying the policies of Commonwealth Delivery, complete the following, indicating the effects for the preceding expenditures. Indicate the effects positive value for increase, negative value for decrease.
Building Accumulated Depreciation Depreciation Expense Repairs Expense Cash
Balance January 1, 2011 $720,000 $360,000
Depreciation for 2011
Balance prior to expenditures 720,000
Expenditure (a)
Expenditure (b)
Expenditure (c)
Balance December 31, 2011
b. What was the book value of the building on December 31, 2011?
c. Explain the effect of depreciation on cash flows.
Answer:
FedEx
a.
Building Accumulated Depreciation Repairs Cash
Depreciation Expense Expense
Balance, January 1,
2011 $720,000 $360,000
Depreciation for 2011 36,000 $36,000
Balance prior to
expenditures 720,000
Expenditure (a) $7,000 $7,000
Expenditure (b) 122,000 122,000
Expenditure (c) 230,000 230,000
Balance December 31,
2011 $1,072,000 $396,000 $36,000 $7,000 $249,000
b. The book value of the building on December 31, 2011 was $1,072,000.
c. Depreciation does not have any effect on cash flows. It is a charge on the income used to record the cost of the use of the asset in the current period. It is a kind of cost allocation, whereby the cost of an asset is recorded in the periodic financial statement in recognition of the use of that asset to generate income for the period.
Explanation:
a) Data and Calculations:
Original cost of building = $720,000
Depreciated value of building = $36,000
Remaining useful life = 10 years
Repairs and maintenance expenses = $7,000
Extensive and major repairs to the building roof = $122,000
Cash cost of New wing = $230,000
Building Accumulated Depreciation Repairs Cash
Depreciation Expense Expense
Balance, January 1,
2011 $720,000 $360,000
Depreciation for 2011 36,000 $36,000
Balance prior to
expenditures 720,000
Expenditure (a) $7,000 $7,000
Expenditure (b) 122,000 122,000
Expenditure (c) 230,000 230,000
Balance December 31,
2011 $1,072,000 36,000 $36,000 $7,000 $249,000
Total liabilities and stockholders' equity $1,279,600 Accounts payable at the end of December would be:
Answer:
d. $258,700
Explanation:
Note: The full question is attached as picture below
Purchase Budget for December
Particulars Amount
Cost of goods sold (65% of 390,000) $253,500
Add: Desired ending inventory $208,000
(80% of following monthly COGS)
Total inventory required $461,500
Less: Beginning inventory $202,800
Purchases $258,700
Thus, the Accounts payable at the end of December is $258,700
The network team has well-established procedures to follow for creating new rules on the firewall. This includes having approval from a manager prior to implementing any new rules. While reviewing the firewall configuration, you notice a recently implemented rule but cannot locate manager approval for it. What would be a good step to have in the procedures for a situation like this
Answer:
D . Immediately roll back the firewall rule until a manager can approve it
Explanation:
Since in the question it is mentioned that while checking the configuration of the firewall, it is notice that the rule of implementation but it cant locaate the approval of manager regarding the same so here the good step is to roll back instantly back to the rule of firewall till the manager approve it
Therefore the correct option is D.
The following data relate to Department no. 2 of Young Corporation:
Segment contribution margin $480,000
Profit margin controllable by the segment manager 226,000
Segment profit margin 108,000.
On the basis of this information, fixed costs traceable to Department no. 2 but controllable by others are:
a) $122,000
b) $140,000
c) $250,000
d) $370,000
e) not determinable.
Answer:
e) not determinable.
Explanation:
Calculation for the fixed costs traceable to Department no. 2 but controllable by others
Profit margin controllable by the segment manager 226,000
Less Segment profit margin (108,000)
Fixed costs traceable to Department no. 2 but controllable by others $118,000
(226,000-108,000)
Therefore the Fixed costs traceable to Department no. 2 but controllable by others are: $118,000
A marketing manager wants to efficiently reach large numbers of customers in a creative way and she is not concerned about the production costs of the medium. Based on the manager's consideration, ________ will be the most appropriate promotional form.
Answer: Advertising
Explanation:
Advertising is referred to as a marketing communication that is used to promote a product or service. It is the most appropriate promotional form when an individual or firm does not consider the production cost that are involved.
Advertising has an advantage as it helps to reach a large number of audience and it also helps to pass messages across to the customers quicker.
20192018201720162015 Sales$656,856$432,142$358,624$243,135$180,100 Cost of goods sold 337,397 222,192 186,298 125,649 91,851 Accounts receivable 31,726 25,194 24,602 14,199 12,355 Compute trend percents for the above accounts, using 2015 as the base year.\
Answer:
Trend Percent for Net Sales :
2016 = 135.00 %
2017 =199.00%
2018 = 239.9 %
2019 = 364.7 %
Trend Percent for Cost of goods sold :
2016 = 136.7 %
2017 = 202.8 %
2018 = 241.9 %
2019 = 367.33 %
Trend Percent for Accounts receivable :
2016 = 114.9 %
2017 = 199.00 %
2018 = 203.9 %
2019 = 256.7 %
Explanation:
2019 2018 2017 2016 2015
Sales $656,856 $432,142 $358,624 $243,135 $180,100
Cost of goods sold 337,397 222,192 186,298 125,649 91,851 Accounts receivable 31,726 25,194 24,602 14,199 12,355
Trend Percent for Net Sales :
2016 Current Year Sales/ Base year Sales = $243,135 /$180,100
= 135.00 %
2017 Current Year Sales/ Base year Sales = $358,624 /$180,100 = 199.00%
2018 Current Year Sales/ Base year Sales =$432,142 / $180,100
= 239.9 %
2019 Current Year Sales/ Base year Sales = $656,856 /$180,100
= 364.7 %
Trend Percent for Cost of goods sold :
2016 Current Year CGS/ Base year CGS = $125,649 /91,851 = 136.7 %
2017 Current Year CGS/ Base year CGS = $ 186,298 /91,851 = 202.8 %
2018 Current Year CGS/ Base year CGS =$ 222,192/ 91,851 = 241.9 %
2019 Current Year CGS/ Base year CGS= $337,397 /91,851 = 367.33 %
Trend Percent for Accounts receivable :
2016 Current Year A/R/ Base year A/R = $14,199 /12,355 = 114.9 %
2017 Current Year A/R/ Base year A/R= $ 24,602 /12,355= 199.00 %
2018 Current Year A/R/ Base year A/R=$ 25,194 / 12,355 = 203.9 %
2019 Current Year A/R/ Base year A/R = $31,726 /12,355 = 256.7 %
Understanding what the team is working on, encouraging wild ideas, and never rejecting an idea simply because it sounds too crazy are examples of _______ at IDEO.
Answer:
Understanding what the team is working on, encouraging wild ideas, and never rejecting an idea simply because it sounds too crazy are examples of _______ at IDEO.
Deviance
Explanation:
At IDEO, deviance is equally encouraged just as conformity is also encouraged. Deviance simply means non conformance to expected ways of doing things. IDEO has recognized the importance of innovation in its product designs. It is important to note that innovation comes in many shapes and sizes, and it is only through diversity in thought that people can recognize opportunities for innovation. This is while it forms teams to bring in the two aspects that encourage innovation: conformity and deviance.
The net effects on the corporation of the declaration and payment of a cash dividend are to increase assets and increase stockholders' equity. increase stockholders' equity and decrease liabilities. decrease assets and decrease stockholders' equity. decrease liabilities and decrease stockholders' equity.
Answer:
Decrease assets and decrease stockholders equity
Explanation:
Shareholders of the Company are rewarded for their contribution through dividends.
Declaration and payment of a cash dividend results in the following journal :
Dividend (debit)
Cash (credit)
Thus,
The Owners Equity Decrease whilst the Assets Account (Cash) Decreases