In preparing the statement of cash flows for Year 5, internal records indicate that depreciation on manufacturing facilities totaled $500 and on selling and administrative facilities totaled $300 during the year. The firm included these amounts in cost of goods sold and selling and administrative expenses, respectively, in the income statement for Year 5 . None of this $800 of depreciation
required an operating cash flow during Year 5 . The firm reported cash expenditures for these assets as investing activities in the earlier periods when it acquired them. The T-account work sheet entry to explain the change in the Accumulated Depreciation account.
a. adds back depreciation to net income in deriving cash flow from operations.
b. subtracts depreciation from net income in deriving cash flow from operations.
c. adds back depreciation on the selling and administrative facilities, only, to net income in deriving cash flow from operations.
d. subtracts depreciation on the selling and administrative facilities, only, from net income in deriving cash flow from operations.
e. none of the above
A
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A bond is simply a form of an interest-bearing note
a. True b. False Indicate whether the statement is true or false
Which of the following correctly describes the accounting for factory depreciation?
A) Factory depreciation is a product cost and is expensed as incurred. B) Factory depreciation is a period cost and is expensed as incurred. C) Factory depreciation is a product cost and is expensed when the manufactured product is sold. D) Factory depreciation is a period cost and is expensed when the manufactured product is sold.
Dawson Corporation has a sales goal of $500,000 for the coming year. Based on this level of activity, Dawson budgets its total expenses at $450,000 . Actual sales are $480,000 and actual costs are $460,000 . Dawson Corporation's operations were
a. both efficient and effective. b. neither efficient nor effective. c. efficient but not effective. d. effective but not efficient.
The increased internationalization of business requires __________ to have a basic knowledge of international business.
A. marketing managers B. managers of transnationals C. managers of multinationals D. managers of purely domestic operations E. all managers