Question

answer each question with an explnation of each answer please

9. Multiple Choice Question 102 Which of the following statements is true? a. Amounts received from issuing stock are revenues. b. Amounts received from issued stock are reported on the income statement. Amounts paid out as dividends are not expenses. Amounts paid out as dividends are reported on the income statement. C. d. Answer: 10. Multiple Choice Question 112 An income statement I reports the changes in assets, liabilities, and stockholders' equity over a period of time. reports the assets, liabilities, and stockholders' equity at a specific date. presents the revenues and expenses for a specific period of time summarizes the changes in retained earnings for a specific period of time. d. Answer: 11. Multiple Choice Question 119 Henson Company began the year with retained earnings of $380000. During the year, the company recorded revenues of $500000, expenses of $380000, and paid dividends of $40000 What was Henson's retained earnings at the end of the year?

the rest of question 11

Answer 1

9. True Statement: Amounts paid out as dividends are not expenses. (Option c)

Dividends do not affect a company’s net income. Dividends affect the shareholder’s equity section of the balance sheet.

Explanation for other choices:

Amounts received from issuing stock are of capital nature and not considered as revenues.

Amounts received from issued stock are reported in the balance sheet and not in the income statement.

Amounts paid as dividends are not reported on the income statement.

10. An Income Statement presents the revenues and expenses for a specific period of time. (Option c)

Explanation for other choices:

Balance Sheet reports the assets, liabilities, and stockholder’s equity at a specific date.

The Retained Earnings Statement summarizes the changes in retained earnings for a specific period of time.

11. Henson’s Retained Earnings at the End of the Year = $460,000 (Option c)

Retained Earnings at the Beginning of the Year = $380,000

Net Income for the Year = Revenues – Expenses = $500,000 - $380,000 = $120,000

Dividends paid = $40,000

Retained Earnings at the End of the Year = Retained Earnings at the Beginning of the Year + Net Income – Dividends Paid = $380,000 + $120,000 -$40,000 = $460,000