It is usually a good business practice to maintain as large a balance in the Cash account as possible
Indicate whether the statement is true or false
False
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Departmental contribution to overhead is the amount of sales for that department, less its direct expenses.
Answer the following statement true (T) or false (F)
Contrasted with public law, an example of private law is:
a. administrative law b. securities regulation c. real property law d. environmental law e. all of the other choices are private law
The most recent comparative balance sheet of Giacomelli Corporation appears below:Comparative Balance Sheet Ending BalanceBeginning BalanceAssets: Current assets: Cash and cash equivalents$37,000 $29,000 Accounts receivable 20,000 24,000 Inventory 65,000 61,000 Prepaid expenses 5,000 7,000 Total current assets 127,000 121,000 Property, plant, and equipment 424,000 399,000 Less accumulated depreciation 231,000 200,000 Net property, plant, and equipment 193,000 199,000 Total assets$320,000 $320,000 Liabilities and stockholders' equity: Current liabilities: Accounts payable$19,000 $17,000 Accrued liabilities 58,000 51,000 Income taxes payable 47,000 42,000 Total current
liabilities 124,000 110,000 Bonds payable 77,000 80,000 Total liabilities 201,000 190,000 Stockholders' equity: Common stock 31,000 30,000 Retained earnings 88,000 100,000 Total stockholders' equity 119,000 130,000 Total liabilities and stockholders' equity$320,000 $320,000 The company uses the indirect method to construct the operating activities section of its statement of cash flows.Which of the following is correct regarding the operating activities section of the statement of cash flows? A. The change in Accounts Payable will be subtracted from net income; The change in Accrued Liabilities will be subtracted from net income B. The change in Accounts Payable will be subtracted from net income; The change in Accrued Liabilities will be added to net income C. The change in Accounts Payable will be added to net income; The change in Accrued Liabilities will be added to net income D. The change in Accounts Payable will be added to net income; The change in Accrued Liabilities will be subtracted from net income
Mini-CasePepe Pieman believes that pizza is a much more versatile meal than most people realize. As the national marketing manager for Pizza Pals, he has watched how consumers ate up barbecue pizza, Hawaiian pizza, Mexican pizza, and other new and unique combinations. His superiors, however, met his suggestions for other unusual pizzas with a negative response. Even some of his teammates laughed at his ideas. Pepe's confidence in his ability to understand the market has led him to focus on planning a business of his own. Pepe realizes that he will take a risk when he leaves his job with Pizza Pals and sets off on a new endeavor: Pepe's Pizzazzeria. Pepe is excited about the potential of profitably catering to the unmet desires of pizza consumers.As a former classmate of Pepe's at the
nearby university, you remind him what you both learned in your small business management class several years ago. What would you remind him? A. Restaurants are probably the most difficult type of business to start up, due to the labor-intensive aspects of the business. B. Restaurants are easy to start up and have great profit potential. C. Restaurants are easy to start up, but difficult to keep going. D. Experts believe that restaurants have a high profit potential, due the fact that there is not much direct competition.