Why do accounting standards require a company to separately disclose income taxes paid and interest paid if it uses the indirect method?
The requirement to separately disclose income taxes paid and interest paid when the indirect method is used is a compromise. Accounting standards strongly encourage companies to use the direct method because each major operating cash receipt and payment is reported in the Operating Activities section of the statement. However, if a company chooses to use the indirect approach, they are still required to report separately how much cash was actually paid to the government in taxes and to creditors in interest.
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Fred is going through the revised draft of a document to make sure that it is clear, complete, concise, consistent, correct, and courteous. It can be concluded that Fred is _____ the document
A. revising B. screening C. editing D. proofreading
A new technique for extracting oil and gas-called "fracking"-spurred an economic boom in the formerly sleepy town of Oilville, located in what had been thought to be a depleted oil field. Workers swarmed into the town, and Karen started a laundry service to meet their needs. In this case, Karen had spotted an entrepreneurial opportunity created by the new extraction technique, or a ________, which in turn created an oil boom, or a(n) ________.
A. technological discovery; economic dislocation B. technological discovery; lifestyle change C. government initiative; lifestyle change D. technological discovery; government initiative E. calamity; economic dislocation
An L3C is a new legal form for social enterprises known as
a. limited liability corporations. b. low-profit, limited liability companies. c. long-term, low-profit, low-liability companies. d. limited liability laborers.
What is the essential element in determining who bears the risk of loss of goods?
A) The party producing the goods bears the risk of loss. B) Risk of loss follows the cash in a transaction. C) Contracts attempting to shift the risk of loss are void due to illegality. D) The party with control over the goods bears the risk of loss.