Cash flows from purchases of merchandise are classified as investing activities
a. True
b. False
Indicate whether the statement is true or false
False
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Lincoln Corp received advance payments from customers during 2016 of $10,000 . At December 31, 2016, $1,000 of the advance payments still had not been earned. After the adjustments are recorded and posted at December 31, 2016, the balances in the Unearned Service Revenue and Service Revenue accounts will be Unearned Service Revenue Service Revenue
a. $ 1,000 $ 9,000 b. $ 1,000 $10,000 c. $11,000 $ 1,000 d. $ 9,000 $10,000
Which one of the following adjustments increases net income for the period?
A) Recognition of the amount of supplies used. B) Recognition of the revenue earned, but not yet received. C) Recognition of the wages earned, but not paid to employees. D) Recognition of rent costs that had been paid to the landlord in advance.
Jacob works at PrimeClean Corp., a car wash company. He is asked to follow a set of instructions in a predetermined order to wash a car. All the details including the amount of washing liquid to use for each type of car are clearly specified. In this case, Jacob's company is most likely to use a:
A. pay structure with large differences in pay among jobs. B. closely tailored pay structure. C. loosely coupled pay structure. D. pay structure that is highly flexible.
Alicia Simmons purchased a standard fire insurance policy with an endorsement for extended coverage. She incurred damage due to nuclear radiation and filed a claim with her insurance company. Why would her insurance company refuse to cover her claim?
A. Normally, insurance companies are skeptical about taking such claims. B. Losses caused by nuclear radiation usually are excluded from extended-coverage endorsements. C. Payments to her would bankrupt the company. D. Insurance companies are slow to respond to policyholders' claims.