Acc400 Week 3 Individual Assignment Essay

675 Words Oct 31st, 2012 3 Pages
Week 3 Individual Assignments

Chapter 10 1. Georgia Lazenby believes a current liability is a debt that can be expected to be paid in one year. Is Georgia correct? Explain.

Yes Georgia is correct because a current liability is a short-term liability that is to be paid within the accounting cycle which is one year or less.

7. (a) What are long-term liabilities? Give two examples

Long term liabilities are company obligations that extend beyond the current year, or alternately, beyond the current operating cycle. Examples are debentures and loans.

(b) What is a bond? – It is a form of interest-bearing note payable issued by corporations, universities, and governmental agencies.
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“Write the press release convincing the stockholders that the stock dividend is just as good as a cash dividend,” he orders. “Just watch our stock rise when we announce the stock dividend; it must be a good thing if that happens.”

(a) Who are the stakeholders in this situation? The stakeholders will be Greenwood Corporation and the stockholders.

(b) Is there anything unethical about President Mailor’s intentions or actions? There’s nothing unethical because when a company is short on cash they issue stock dividends.

(c) What is the effect of a stock dividend on a corporation’s stockholders’ equity accounts?
Declaring stock dividends has no effect on a corporation's stockholders' equity accounts. However, the retained earnings account loses its worth while the common stock account and additional paid-in capital account see their amounts increase.

Which would you rather receive as a stockholder—a cash dividend or a stock dividend? Why? As a stockholder I would rather receive a cash dividend instead of stock dividend because cash dividends are beneficial, however in that they provide shareholders with regular income on their investment along with exposure to capital appreciation. They are the surest way to build wealth.

Ch. 11: Internet Assignment 11-1

Answer the following questions:
a. Does the company report preferred stock in its balance sheet? If so, how many

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