Which of the following is considered an operating activity on the statement of cash flows prepared using the direct method?
A) dividends paid to stockholders
B) sale of merchandise inventory for cash
C) payment to purchase equipment
D) the receipt of cash from sale of equipment
B
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Paying interest to lenders is classified as an operating activity on the statement of cash flows.
Answer the following statement true (T) or false (F)
Carmelo, an employee of Rondo Corporation, is granted an option to acquire 400 shares of the company's stock under its nonqualified stock option plan. Which of the following are correct statements? I.If the option has a readily ascertainable fair market value, Carmelo must report income equal to the fair market value of the option times the number of shares granted (i.e., 400 shares).II.If the option does not have a readily ascertainable fair market value, Carmelo will not report any income at the date of grant.?
A. Only statement I is correct. B. Only statement II is correct. C. Both statements are correct. D. Neither statement is correct.
Materials used by Square Yard Products Inc in producing Division 3's product are currently purchased from outside suppliers at a cost of $5 per unit. However, the same materials are available from Division 6. Division 6 has unused capacity and can produce the materials needed by Division 3 at a variable cost of $3 per unit. A transfer price of $3.20 per unit is established, and 40,000 units of
material are transferred, with no reduction in Division 6's current sales. How much would Division 6's income from operations increase? A) $8,000 B) $15,000 C) $80,000 D) $150,000
Nolan served as a congressional ____ during the summer
A) aid B) aide C) ade