The financial statements of a business entity:

A. Include the balance sheet, income statement, and income tax return.

B. Provide information about the cash flow prospects of the company.

C. Are the first step in the accounting process.

D. Are prepared for a fee by the Financial Accounting Standards Board.

B

Business

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If the court refuses to certify a class action lawsuit, no individual who claims an entitlement to damages can sue individually

Indicate whether the statement is true or false

Business

A corporation has been paying out $1 million per year in dividends for the past several years. This

year, the company wants to pay the $1 million dividend, but can't. All of the following are reasons the company cannot continue its dividend payment policy EXCEPT A) the company's retained earnings balance at the end of the year is less than $1 million. B) the company's cash balance is less than $1 million. C) the company's net income this year is less than $1 million. D) the company's liabilities exceed its assets.

Business