Assume the indirect method is used to compute net cash flows from operating activities. For this item extracted from the financial statements—Increase in Income Taxes Payable—indicate the effect on net income in arriving at net cash flows from operating activities by choosing one of the following:
a. Add to net income to arrive at net cash flows from operating activities
b. Subtract from net income to arrive at net cash flows from operating activities
c. Not used to adjust net income to calculate net cash flows from operating activities
A
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a. It can help one become a better follower. b. It can help improve one’s happiness. c. It can help make one smarter. d. It can help one make more friends.
A company paid $37,800 to acquire 8% bonds with a $40,000 maturity value. The company intends to hold the bonds to maturity. The cash proceeds the company will receive when the bonds mature equal:
A. $40,525. B. $38,325. C. $43,200. D. $40,000. E. $37,800.
At Jacobson Company, indirect labor is a variable cost that varies with direct labor-hours. Last month's performance report showed that actual indirect labor cost totaled $5,780 for the month and that the associated spending variance was $245 F. If 24,100 direct labor-hours were actually worked last month, then the flexible budget cost formula for indirect labor must be (per direct labor-hour):
A. $0.25 B. $0.35 C. $0.20 D. $0.30
Identify a true statement about the function of Google's Ad Words
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