Allen Company bought a new copy machine to be depreciated straight line for three years for use by sales personnel. Where would this purchase be reflected on the Statement of Cash Flows?
A) It would be an expense on the income statement so it would be reflected in operating cash flows.
B) It would be an addition to property, plant and equipment so it would be an investing activity.
C) It would be an addition to cash so it would be reflected in the change in cash.
D) None of the above answers is correct.
Answer: B
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In high-technology companies, there is an inordinate focus on the technology and product features rather than the customer and the benefits sought because:
A) products sell better with focus on technology than with focus on customers. B) high-technology companies are usually founded and run by engineers. C) these companies invest huge amounts in innovation and have the ability to create entire product classes. D) they believe that customers are not aware of the technological innovations that they are capable of.
Define market-based transfer price. When should market-based transfer pricing be used? Explain your answer.
What will be an ideal response?
A workforce forecast predicts future people requirements based on an analysis of the future availability of labor and future labor requirements. Each of these is tempered by an analysis of external conditions.
Answer the following statement true (T) or false (F)
If the adjustment for accrued salaries at the end of the period is inadvertently omitted, both liabilities and owner's equity will be overstated for the period
Indicate whether the statement is true or false