During Year 1, Mallard Company earned $165,000 of sales revenue on account and accrued $122,500 of operating expenses. The company also earned $26,400 of service revenue that had previously been recorded as unearned revenue. In addition, a $2,200 stock dividend was issued to the stockholders. What can be said about cash flows considering these transactions?
A. Cash inflows from operating activities are $68,900.
B. There are no cash inflows or outflows as a result of these activities.
C. Cash outflows from financing activities are $2,200.
D. Cash inflows from operating activities are $42,500.
Answer: B
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Royal Company purchased a dump truck at the beginning of 2012 at a cost of $60,000 . The truck had an estimated life of 6 years and an estimated residual value of $24,000 . On January 1, 2014, the company made major repairs of $20,000 to the truck that extended the life 1 year. Thus, starting with 2014, the truck has a remaining life of 5 years and a new salvage value of $8,000 . Royal uses the
straight-line depreciation method. When calculating depreciation for 2014, Royal should a. add the $20,000 to the book value at December 31, 2013 and then allocate the revised basis over the remaining adjusted useful life of 5 years. b. report the effect of the change in life as an expense on the income statement in 2013. c. ignore the change in life on the original cost of $60,000 and depreciate the additional $20,000 cost separately over its useful life. d. expense the $20,000 and depreciate the original cost of $60,000 over its revised estimated total live of 7 years.
Assuming that you are a salesperson making a group sales presentation, which of these statements is true?
A. Establish your credibility in the early stage of the presentation. B. The larger the group, the less structured your presentation must be. C. Avoid talking to any members of the group prior to the presentation. D. Omit trial closes from your presentation. E. Prepare a written proposal document that includes prices.
The phase of ERP implementation in which a firm has reached maturity with the system is referred to as?
a. Synergize b. Synthesize c. Stabilize d. Synchronize
Which of the following statements, regarding International Financial Reporting Standards (IFRS), is correct?
A) International Financial Reporting Standards are issued by the Financial Accounting Standards Board. B) The Securities and Exchange Commission is the private organization that oversees the creation and governance of International Financial Reporting Standards. C) International Financial Reporting Standards represent a set of global accounting standards that are generally more specific and based less on principle than U.S. Generally Accepted Accounting Principles. D) Companies who are incorporated in or do significant business in another country might be required to publish financial statements using International Financial Reporting Standards.