Question

Listed here are some items found in the financial statements of Finzelberg. Indicate in which financial statement(s) each item would appear. (a) Service revenue. (d) Accounts receivable. (b) Equipment. (e) Common stock. (c) Advertising expense. (f) Interest payable.

- Why would a bank want to monitor the dividend payment practices of the corporations to which it lends money?

Answer 1

Answer: The list is as follows:

Step-by-step explanation:

(a) Service revenue - Income statement

(b) Accounts receivable - Balance sheet

(c) Equipment - Balance sheet

(d) Common stock - Balance sheet

(e) Advertising expense - Income statement

(f) Interest payable - Balance sheet

An investor use the information about the companies future strategy and opportunities before buying and selling of any stock. This information represents the companies dividend trend.

The dividend information of a corporation is monitor by a bank because these dividend will make a affect on the balance sheet and it will help banks to effectively monitor lending risk.