Gross profit is a measure of the amount of sales dollars ...

[ENagel]

Gross profit is a measure of the amount of sales dollars available to cover expenses after covering the cost of the goods sold.
 a. True
   b. False
   Indicate whether the statement is true or false

Question 2

Show the effect on the accounting equation for each of the events below. Fill in the AMOUNT and the LETTER of the account title from the list of accounts provided.
 
  A Additional paid-in capital D Dividends G Net income
  B Cash E Dividends payable H Revenue
  C Common stock F Interest expense I Treasury stock
 
   Shareholders' equity
   Assets Liabilities Contributed capital Retained earnings
  Company issued 1,000 shares of 1 par value stock for 4 each
  Company repurchased 20 shares for 5 each
  Company declared a 10,000 dividend to be paid in two months
  Company paid the 10,000 dividend from above
 
  What will be an ideal response?

[IRincones]

Answer to Question 1

True

Answer to Question 2

Shareholders' equity
Assets Liabilities Contributed capital Retained earnings
4,000 B 1,000 C
3,000 A
(100 ) B (100 ) I
10,000 E (10,000 ) D
(10,000 ) B (10,000 ) E

[ENagel]

Great answer, keep it coming

[kjohnson]

Excellent