Sue deposits in her account at First Bank a $50 check drawn on Valley Bank. First Bank transfers the check to Second Bank, which in turn forwards it to Valley Bank, which pays the item. Valley Bank is the:
a. payor bank.
b. drawee bank.
c. collecting bank.
d. The payor bank and also the drawee bank.
d
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The main difference between pro forma statements and actual statements is that pro forma statements ______.
a. report past results b. project future results c. formalize financial data for easy comparison d. combine past and future results
When using the indirect method to calculate and report net cash provided or used by operating activities, which of the following is subtracted from net income?
A. Depreciation expense. B. Decrease in income taxes payable. C. Amortization of intangible assets. D. Bad debts expense. E. Decrease in merchandise inventory.
General Supply owns all the stock of Playne Pencils. A Playne employee commits a tort for which the employer is liable. The suit results in a judgment for $1 million against Playne. Playne's assets total $650,000, but General Supply's assets are in the millions. In which of the following situations would the judgment have to be paid by General?
a. General Supply's board of directors is exactly the same as Playne's. b. The president of General Supply is also the vice president of Playne. c. Playne's income and General Supply's income is held in one account. d. None of these.
Malden Mills was able to emerge after the fire with a story of continuing success
Indicate whether the statement is true or false