When preparing the operating activities section of the statement of cash flows using the indirect method, an increase in Income Taxes Payable is added to net income.
Answer the following statement true (T) or false (F)
True
An increase in Income Taxes Payable indicates that more Income Tax Expense was accrued than paid. Consequently, when the indirect method is used, this difference (representing less cash paid) must be added to net income to calculate cash flows from operating activities.
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Which variable is incorrectly defined in the following code?
Public Function Cost_Equity_3_Stage(Growth1 As Single, Growth2 As Double, Period1 As Integer, Period2 As Integer, Dividend As Single, Price As Double) As Range 'Calculates the required return on common stocks using the three-stage growth model Cost_Equity_3_Stage = Growth2 + (Dividend / Price) * (1 + Growth2 + ((Period1 + Period2) / 2) * (Growth1 - Growth2)) End Function a) Growth1 b) Period2 c) Dividend d) Price e) Cost_Equity_3_Stage
Which of the following modes of transport should Roland choose to transport the unprocessed vegetables from Riverdale's farms to the Giant Beanstalks' factory quickly and with minimum cost?
A) air carrier B) pipeline C) truck D) oil tanks E) air tunnels
If an analyst desires a conservative net present value estimate, he/she will assume that all cash inflows occur at
a. mid year. b. the beginning of the year. c. year end. d. irregular intervals.
A firm issues convertible bonds that pay 8% interest and receives $100,000 . The firm could have issued nonconvertible bonds that pay 8% interest but would have received only $80,000 in bond proceeds. What journal entry is necessary under GAAP to record the issuance of the convertible bonds?
a. Cash 100,000 Convertible Bonds Payable 80,000 Additional Paid-in Capital 20,000 b. Cash 100,000 Convertible Bonds Payable 80,000 Convertible Bond income 20,000 c. Cash 100,000 Convertible Bonds Payable 100,000 d. Convertible Bonds Payable 100,000 Cash 100,000 e. No entry is required