Indicate whether each of the following statements regarding the statement of cash flows (SCF) is true or false. ________ a) Purchase of merchandise inventory on account would appear in the operating activities section of the SCF. ________ b) Sale of treasury stock would appear in the investing activities section of the SCF.________ c) Cash proceeds from the sale of a used truck would appear in the operating activities section of the SCF.________ d) Cash purchases of marketable securities would appear in the investing activities section of the SCF.________ e) Payment of salaries would appear in the operating activities section of the SCF.
What will be an ideal response?
a) F b) F c) F d) T e) T
a) This is false. The purchase of merchandise inventory on account does not involve cash.
b) This is false. The sale of treasury stock is a financing activity.
c) This is false. Proceeds from the sale of a truck are recorded as an investing activity.
d) This is true. Cash flows reported as investing activities include cash payments (outflows) for purchasing property, plant, equipment, or marketable securities, as well as for making loans to borrowers.
e) This is true. Cash flows reported as operating activities include cash payments for expenses, including salaries expense.
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According to the text, the Nielsen Co. was recognized as the largest global research firm based on global research revenues
Indicate whether the statement is true or false
Transformational leaders demonstrate ______________ when they act as role models for their followers.
a. idealized influence b. inspirational motivation c. intellectual stimulation d. individualized consideration
Wendy has purchased several furnishing items from a home decor store. She pays for the entire purchase through her credit card. Wendy has 21 days to pay back the amount to the issuer of the credit card. In the context of credit cards, the number of days Wendy is given to pay back the balance is called the _____.
A. grace period B. face value period C. vesting period D. tie-up period
When Simple Semiconductors was operating at the minimum efficient scale of 10,000-12,000 units per month, the firm's cost per unit was $45. However, when the output level was increased beyond 12,000 units, the cost per unit increased to $47. This increase was attributed to the wear-and-tear of the machinery, and complexities of managing and coordinating. What is this phenomenon known as?
A. minimum efficient scale B. learning-curve effect C. experience curve effect D. diseconomies of scale