Assume that the balance of accounts payable does not change during a period. When preparing a statement of cash flows, an increase in ending inventory over beginning inventory will result in an adjustment to net income under the indirect approach because
a. the amount of cost of goods sold is equal to the amount of cash paid for purchases.
b. consumed inventory is an expense but not a use of funds.
c. the amount of cost of goods sold on an accrual basis is less than the amount of cash paid for purchases of inventory.
d. the amount of cash paid for purchases of inventory is less than the amount of cost of goods sold on an accrual basis.
C
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Oakland Corp purchased land and a building for a combined cost of $500,000 . Oakland must
a. record the $500,000 acquisition cost in an account called Land and Buildings. b. depreciate the $500,000 acquisition cost, less any residual value, over the expected useful life of the building. c. because part of the purchase involved land, record all of the cost in the Land account. d. allocate the $500,000 acquisition cost to separate Land and Buildings accounts based on their respective fair market values.
Transfer prices may be used when decentralized units are organized as cost, profit, or investment centers
Indicate whether the statement is true or false
Because slang words are in use for long periods, people who read business documents that are several years old should have no problem understanding them
Indicate whether the statement is true or false
The PMBoK definition stating, "a process that sets a project's scope by breaking down its overall mission into a cohesive set of synchronous, increasingly specific tasks," is for the:
A) Project plan. B) Work breakdown structure. C) Deliverable statement. D) Scope expansion.