An advantage of using ROI to evaluate performance is that it encourages the manager to reduce the investment in operating assets as well as increase net operating income.
Answer the following statement true (T) or false (F)
True
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A building with a cost of $163,000 and accumulated depreciation of $32,000 was sold for a $11,000 gain. When using the indirect method, the cash generated from this investing activity was $131,000
a. True b. False Indicate whether the statement is true or false
GAAP allows the use of either the direct or indirect method but prefers the direct method. Companies who use the indirect method must also include a separate schedule reconciling net income to net cash flow provided by operating activities
Indicate whether the statement is true or false
The income earned from the performance of services or sale of products is called revenue
Indicate whether the statement is true or false
_____ is the element in the promotional mix that evaluates people's attitudes, identifies issues that may elicit their concern, and executes programs to gain their understanding and acceptance
a. Personal selling b. Advertising c. Sales promotion d. Public relations