How many types of seasoned equity offerings are there?
What will be an ideal response?
Answer: There are two kinds of seasoned equity offerings: a cash offer and a rights offer. In a cash offer, a firm offers the new shares to investors at large, while in a rights offer, the firm offers new shares only to existing shareholders.
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Which of the following is not treated differently for the direct vs. indirect method of reporting cash flows?
A) share based compensation B) bad debts C) unrealized gains or losses for available-for-sale securities D) equity method adjustments
Ben Dryden, president of Jet Glass, Inc, noticed a $8,000 debit to Accounts Payable in the company's general ledger. This debit could correspond to:
A. A $8,000 sale to a customer. B. A purchase of equipment costing $8,000 on credit. C. A payment of $8,000 to a supplier to settle a balance due. D. The failure to pay this month's $8,000 utility bill on time.