MGMT 20000 Midterm: MGMT 200 Exam 1

• School: Purdue University
• Department: Management
• Course: MGMT 20000
• Professor: Frank Kane

Document Summary

Dividends represent a return of the company"s profits to its sotckholders. In a corporation, the authority to pay a dividend is determined by the board of directors. Stockholders" claims to the company"s resources amount to ,000 (assets- liabilities=equity) Owners are not personally responsible for the liabilities of the corporation. Transfer of ownership will not affect the continuity of a corporation. The costs related to rent, utilities, and salaries in the current reporting period are examples of liabilities. The statement provides info about a business" ability to earn a profit and growth. Lakemont resources, inc. purchase office paper on account . Bampton, inc. received a invoice for electric power used in its business for the current month and immediately paid it. Its journal entry to record this transaction includes a. Involves the transferring information in journal entries to the general ledger. A liability account for royalties due on product sales has a debit balance.