Recent Question

Dual pricing reduces the goal-congruence problem associated TRUE/FALSE 1. The costs used in cost-based transfer prices can only be actual costs. 2. The choice of a transfer-pricing method has minimal effect on the allocation of company-wide operating income among divisions. 3. No matter how low the transfer price, the manager of the selling division should sell the division's product to other company divisions in the interests ...

Other / Other 08 Apr 2016

The order of presentation of activities on the statement of cash flows 1. Lending money and collecting the loans are a. operating activities. b. investing activities. c. financing activities. d. Non-cash investing and financing activities. 2. The cash effects of transactions that create revenues and expenses are a. financing activities. b. investing activities. c. operating activities. d. processing activities. 3. The acq ...

Other / Other 08 Apr 2016

Which of the following adjustments to convert net income 1. Which of the following adjustments to convert net income to net cash provided by operating activities is correct? Add to Net Income Deduct from Net Income a. Accounts Receivable increase decrease b. Prepaid Expenses increase decrease c. Inventory decrease increase d. Taxes Payable decrease increase 2. Which of the following adjustments to convert net income to net cas ...

Other / Other 08 Apr 2016

Cash provided by operating activities fails to take into account True or false: 1. A loss on sale of equipment is added to net income in determining cash provided by operations under the indirect method. 2. In preparing a statement of cash flows, an increase in the Common Stock and Treasury Stock accounts during a period would be an investing activity. 3. Cash provided by operating activities fails to take into account that a ...

Other / Other 08 Apr 2016

If accounts receivable have increased 1. If accounts receivable have increased during the period, a. revenues on an accrual basis are less than revenues on a cash basis. b. revenues on an accrual basis are greater than revenues on a cash basis. c. revenues on an accrual basis are the same as revenues on a cash basis. d. expenses on an accrual basis are greater than expenses on a cash basis. 2. If accounts payable have increased ...

Other / Other 08 Apr 2016

Each of the following would be reported under operating activities a1. During 2014, Zuma Company had $150,000 in cash sales and $1,240,000 in credit sales. The accounts receivable balances were $180,000 and $215,000 at December 31, 2013 and 2014, respectively. Using the direct method of reporting cash flows from operating activities, what was the total cash collected from all customers during 2014? a. $1,205,000 b. $1,425,000 c. $1 ...

Other / Other 08 Apr 2016

Calculate net cash flows from operating activities 1 Selected transactions for the Ecker Company are listed below. 1. Collected accounts receivable. 2. Declared and paid dividends on common stock. 3. Sold long-term investments for cash. 4. Issued stock for equipment. 5. Repaid five year note payable. 6. Paid employee wages. 7. Converted bonds payable to common stock. 8. Acquired long-term investment with cash. 9. Sold ...

Other / Other 08 Apr 2016

Show Company had total operating expenses 1 Small Company reported cost of goods sold of $179,000 on its 2014 income statement. The company’s beginning inventory was $35,000. The ending inventory was valued at $40,000. The Accounts Payable balance at January 1 was $25,000. The December 31 balance in Accounts Payable was $22,000. Instructions Compute cash payments to suppliers. 2 Show Company had total operating expens ...

Other / Other 08 Apr 2016

If a company has both an inflow and outflow of cash 1. If a company has both an inflow and outflow of cash related to property, plant, and equipment, the a. two cash effects can be netted and presented as one item in the investing activities section. b. cash inflow and cash outflow should be reported separately in the investing activities section. c. two cash effects can be netted and presented as one item in the financing activities s ...

Other / Other 08 Apr 2016

The statement of cash flows classifies cash receipts True or false: 1. The statement of cash flows classifies cash receipts and cash payments into two categories: operating activities and nonoperating activities. 2. Financing activities include the obtaining of cash from issuing debt and repaying the amounts borrowed. 3. The adjusted trial balance is the only item needed to prepare the Statement of Cash Flows. 4. Under ...

Other / Other 08 Apr 2016