Indicate how each event affects the elements of the financial statements. Use the following letters to record your answer in the box shown below each element. You do not need to enter amounts. Increase = IDecrease = DNo Effect = NA(Note that "No Effect" means that the event either does not affect the element of the financial statements or that the event causes an increase in that element and is offset by a decrease in that same element.) Ping Company remitted the sales tax due (that is, paid cash to the tax authority).AssetsLiabilitiesStk. EquityRevenuesExpensesNetStmt. of ?IncomeCash Flows???????
What will be an ideal response?
(D) (D) (NA) (NA) (NA) (NA) (D)
Paying sales tax decreases assets (cash) and decreases liabilities (sales tax payable). It is reported as a cash outflow for operating activities on the statement of cash flows.
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A. centralization B. spatial differentiation C. formalization D. horizontal differentiation
A method by which one can compare cash flows across time—either as what a future cash flow is worth today (present value) or what an investment made today will be worth in the future (future value)—is called
A) time-value of money. B) compounding. C) simple interest. D) opportunity cost.
Transfer agreements in Japan and some newly developed countries such as Korea require: A) approval by the government
B) negotiation between the foreign licensor and the government. C) notification to the government. D) assurance that the agreement has not be entered into corruptly.
According to Hersey and Blanchard, a high task-low relationship situation calls for the ________ leadership style.
A. delegating B. telling C. participating D. selling