A sunk cost is a cash flow that could be realized from the best alternative use of an owned asset

Indicate whether the statement is true or false


FALSE

Business

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Most dissatisfied customers complain to the company about poor services or products

Indicate whether the statement is true or false.

Business

Favorable variances are represented by debit balances in the overhead account

Indicate whether the statement is true or false

Business

Packard Company engaged in the following transactions during Year 1, its first year of operations: (Assume all transactions are cash transactions.) 1) Acquired $1800 cash from the issue of common stock. 2) Borrowed $1270 from a bank.  3) Earned $1450 of revenues.  4) Paid expenses of $420.  5) Paid a $220 dividend.  During Year 2, Packard engaged in the following transactions: (Assume all transactions are cash transactions.) 1) Issued an additional $1175 of common stock. 2) Repaid $815 of its debt to the bank.  3) Earned revenues of $1600.  4) Incurred expenses of $700.  5) Paid dividends of $270. What is the net cash inflow from operating activities that will be reported on Packard's statement of cash flows for Year 1?

A. $905. B. $1030. C. $1890. D. $1175.

Business

The bond indenture is a contract between the bond-issuing corporation and the bond investors

Indicate whether the statement is true or false

Business