Smith and Company reported net income for the current year. Which of the following business transactions would cause cash from operating activities to be higher than the amount of net income?
A) Cash dividends were paid to stockholders during the year.
B) Depreciation expense was recorded for the year.
C) A bank loan was repaid during the year.
D) Equipment was purchased for cash during the year.
B
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Since a store design cannot achieve all objectives, managers need to make trade-offs among them. Which of the following does not describes such trade-offs?
A. The trade-off between the ease of finding merchandise and providing an interesting shopping experience is determined by the customer's shopping needs. B. A supermarket's traditional design can efficiently store and display a lot of merchandise with long rows of floor-to-ceiling racks; however, this design is not good for a pleasant shopping experience. C. Giving customers adequate space in which to shop has to be balanced with the use of scarce resource for merchandise. D. Retailers often make trade-offs between stimulating impulse purchases and making it easy to buy products. E. Specialty store retailers encourage the ease of finding merchandise rather than exploration.
Scotland, Inc. issued a $5,000 face value, 10%, five-year bond at 98. What will be the journal entries at the maturity of the bond? The bonds have semiannual interest, and the company uses the straight-line method of amortization.
Omit explanations.
The total fixed overhead variance is comprised of the
a. variable overhead efficiency and fixed variances. b. fixed overhead budget and volume variances. c. labor efficiency and rate variances. d. variable overhead spending and efficiency variances.
In both U.S. GAAP and IFRS, hedge accounting is elective; firms need not designate any derivatives as accounting hedges, regardless of the degree to which the derivatives mitigate the volatility of outcomes of other arrangements
Indicate whether the statement is true or false