【正文】 ure 23．Describe the three conditions that corporations declare and pay cash dividends on shares outstanding. 現(xiàn)金股利的發(fā)放條件。參考答案：Numerous reasons exist for a pany to issue a stock dividend:to show that the firm plans to permanently retain a portion of earnings in the businessto increase the number of shares outstanding, which reduces the market price per share and which, in turn, tends to increase trading of shares in the market. (a large stock dividends)to continue dividend distributions without disbursing assets (usually cash) that may be needed for operations stock dividends do not subject the shareholders to ine taxshareholders may actually prefer to receive stock dividends because they can sell these additional shares only if they choose to do so25．Differentiate between the stock dividends and stock splits.股票股利與股票分割的區(qū)別。 more of stock)Stock dividends require journal entriesStock Splits：Par value of a share decreasesTotal number of shares increasesTotal stockholders’ equity does not changeThe position of equity does not change (same amounts of stock and RE)Stock splits do not require journal entries26． Describe the reasons that a pany may retire shares. 簡述企業(yè)取得庫藏股的原因。s stock in securities market in hopes of enhancing market ，以希望提高市場價值Have additional shares available for use in acquisition of other Reduce number of shares outstanding, thereby increasing earnings per ，以提高每股收益Prevent a hostile 28． Describe the matching methods between the expenses and revenue. 費用與收入配比的三種方法。參考答案：Financial statement analysis has two purposes: (1) to use the past performance of an entity to predict its future profitability and cash flows.(2) to evaluate the performance of an entity with an eye toward identifying problem areas. 30. What is the purpose of a statement of cash flows? How does it differ from a balance sheet and an ine statement? 說明現(xiàn)金流量表的作用，這與收益表和資產(chǎn)負債表的作用有何不同參考答案：Usefulness of the Ine Statement：Evaluate past Predicting future Help assess the risk or uncertainty of achieving future cash Usefulness of the balance sheet：Evaluating the capital structure.Assess risk and future cash flows.Analyze the pany’s: Liquidity, solvency, and sinancial flexibility.Purpose of the Statement of Cash Flows：To provide relevant information about the cash receipts and cash payments of an enterprise during a period. The statement provides answers to the following questions:Where did the cash e from?What was the cash used for?What was the change in the cash balance?Importance of the statement of cash flow：It is useful to managers in evaluating past operations and in planning future investing and financing activities.It is useful to investors, creditors, and others in assessing a firm’s profit potential.It is a basis for assessing the firm’s ability to pay its maturing debt. 31. What are the horizontal analysis, vertical Analysis and ratio analysis?什么是橫向分析、縱向分析、比率分析？(1) Horizontal analysis (or trend analysis): Uses data from prior years as a yardstick. The oldest year is used as a base, line by line, and subsequent years are expressed as a percentage of the base. Two steps:select a base year and assign each item on the base year statement a weight of 100%。s withdrawal of $1,850.ANS: (a)Cash10,000 Shirley Knowles, Capital10,000(b)Equipment35,000 Cash10,000 Notes Payable25,000(c)Rent Expense1,000 Cash1,000(d)Supplies8,500 Accounts Payable8,500(e)Accounts Receivable2,500 Fees Earned2,500(f)Cash11,000 Fees Earned11,000(g)Accounts Payable200 Cash200(h)Wages Expense1,250 Cash1,250(i)Cash1,150 Accounts Receivable1,150(j)Shirley Knowles, Drawing1,850 Cash1,850 2． Journalize the six entries that adjust the accounts at December 31. One of the accounts was affected by two different adjusting entries.UnadjustedTrial BalanceAdjustedTrial BalanceCash 3,000 3,000Accounts Receivable30,00030,500Supplies 1,700 100Prepaid Insurance 2,000 400Equipment 9,000 9,000Accumulated Depreciation 1,500Wages Payable 4,000Unearned Fees 6,000 1,500Ann Cole, Capital20,00020,000Fees Earned62,00067,000Wages Expense42,30046,300Supplies Expense 1,600Insurance Expense 1,600Depreciation Expense 1,500 Total88,00088,00094,00094,000========================ANS: Accounts Receivable500 Fees Earned500Supplies Expense1,600 Supplies1,600Insurance Expense1,600 Prepaid Insurance1,600Depreciation Expense1,500 Accumulated Depreciation1,500Unearned Fees4,500 Fees Earned4,500Wages Expense4,000 Wages Payable4,000 3. For each of the following, journalize the necessary adjusting entry:(a)A business pays weekly salaries of $15,000 on Friday for a fiveday week ending on that day. Journalize the necessary adjusting entry at the end of the fiscal period, assuming that the fiscal period ends (1) on Wednesday, (2) on Thursday.(b)The balance in the prepaid insurance account before adjustment at the end of the year is $14,000. Journalize the adjusting entry required under each of the following alternatives: (1) the amount of insurance expired during the year is $4,500, (2) the amount of unexpired insurance applicable to a future period is $1,500.(c)On July 1 of the current year, a business pays $36,000 to the city for license taxes for the ing fiscal year. The same business is also required to pay an annual property tax at the end of the year. The estimated amount of the current yea