________ is(are) added back to the pro forma sources and applications of funds statement because it does not represent and out-of-pocket expense. 

A. Inventory
B. Depreciation
C. Equipment purchases
D. Dividends


Answer: B

Business

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The Lily Company uses the percent of receivables method of accounting for uncollectible accounts receivable, and a perpetual inventory system. As of January 1, its net accounts receivable totaled $192,000 (Accounts Receivable $200,000 less an $8,000 Allowance for Doubtful Accounts). During the current year, the following transactions occurred.  1)Merchandise costing $1,050,000 was sold on account for $1,400,000.  2)The company collected $1,294,000 from customers on account.3)$6,000 of accounts receivable were deemed uncollectible and written off.4)$1,000 of accounts receivable previously written off as uncollectible were recovered.5)At year-end, Lily Company estimates that 4% of its accounts receivable are uncollectible.Prepare journal entries to record these transactions. 

What will be an ideal response?

Business

To measure a firm's economic performance and position in a given period, it makes sense to measure all of the following except:

a. The daily free cash flow published by the Wall Street Journal. b. Expenses incurred for resources consumed in that period. c. A portion of the long-lived resources consumed during that period. d. The cost of commitments made during that period to pay retirement benefits to employees in future periods.

Business

A change in the ownership of a partnership results in the

A) consolidating of the partnership B) liquidating of the partnership C) realization of the partnership D) dissolution of the partnership

Business

If a modification of the lease contract increases the lease payment to $1,000 or more, the modification has to be in writing to be enforceable

Indicate whether the statement is true or false

Business