Which of the following activities is computed differently using the two methods of formatting a Statement of Cash Flows?

A) Operating activities
B) Financing activities
C) Investing activities
D) Both operating activities and investing activities


A) Operating activities

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A new company issues 2,000 shares of $5 par common stock in exchange for the services of a lawyer during its first month of business. The lawyer's normal fee is $15,000 for similar work. Which of the following would be recorded if the stock is not currently trading?

a. A debit to Common Stock for $10,000 b. A credit to Common Stock for $15,000 c. A debit to Additional Paid-In Capital—Common Stock of $5,000 d. A credit to Additional Paid-In Capital—Common Stock of $5,000

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When training waitstaff on memorizing the menu and specials, the best measure of training effectiveness is _______.

a. Content mastery b. Participant reactions c. Behavioral change d. Organizational performance

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In mechanistic organizations, ______ perform the evaluations.

a. peers b. managers c. direct reports d. uninvolved third parties

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Trump Company Other revenues $110,000 General and administrative expenses $250,000 Dividends $120,000 Gross profit $750,000 Selling expenses $220,000 Income tax expense $117,000 Refer to the information provided for Trump Company. What is Trump Company's income from operations?

A) $160,000 B) $280,000 C) $220,000 D) $120,000

Business