Operating activities include cash outflows to

a. purchase: property and equipment.
b. purchase debt or equity securities.
c. make loans to other entities.
d. suppliers for inventory.

A company proposes to include in its SEC registration statement a balance sheet showing its subordinate debt as a portion of stockholders’ equity. Will the SEC allow this? Why or why not?

The average tuition and fees at private $4$-year colleges and universities increased from $\$ 8396$ in $1990$ to $\$ 23,210$ in $2010$ (per full-time equivalent student). Calculate the relative change in cost over this time period, and compare it to the overall rate of inflation as measured by the CPI.

All of the following are examples of equity capital except: (a) Sale of preferred stock (b) Long-term bonds (c) Company cash on hand (d) Use of retained earnings

Which account would not be included in the debt-to-equity ratio calculation?

a. Unearned Revenue.

b. Retained Earnings.

c. Income Taxes Payable.

d. All of the above are included.

Indicate whether each of the following types of transactions will either increase owner’s equity.

1. owner’s investments
2. revenues
3. expenses
4. owner’s withdrawals

The accounting equation (Assets= Liabilities+ Equity) is a fundamental business concept. Explain what this equation reveals about a company's sources and uses of funds and the claims on company resources.

Determine in which financial statement the account would most likely appear: income statement (1), balance sheet (B), or statement of owner's equity (E).
 Withdrawals

Indicate the effects of the given transaction on assets, liabilities, and equity, including identifying the individual accounts affected.

Received amount due from the client for the billed services rendered

A vacant lot acquired for $180,000 is sold for$440,000 in cash. What is the effect of the sale on the total amount of the seller’s (1) assets, (2) liabilities, and (3) owner’s equity?

A firm has a profit margin of 3% and an equity multiplier of 1.9. Its sales are $150 million, and it has total assets of$60 million. What is its ROE?

Indicate the effects of the given transaction on assets, liabilities, and equity, including identifying the individual accounts affected.

Borrowed cash (and signed a six-month note) from bank

Determine the financial statement on which the item below appears. Use I for income statement. E for statement of owner's equity, and B for balance sheet.
 Depreciation Expense

A company proposes to include in its SEC registration statement a balance sheet showing its subordinate debt as a portion of stockholders' equity. Will the SEC allow this? Why or why not?