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
False
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The economic value of a building may decline below its book value but an impairment loss would not be recognized when the
a. undiscounted future cash flows exceed its book value. b. undiscounted future cash flows exceed its market value. c. discounted future cash flows exceed its book value. d. discounted future cash flows exceed its market value. e. discounted future cash flows exceed its liquidation value.
The PW Partnership's balance sheet includes the following assets immediately before it liquidates: Basis FMVCash$10,000 $10,000Unrealized receivables-0- 10,000Total$10,000 $20,000 In complete liquidation, PW distributes the cash to Pamela and the unrealized receivables to Wade (equal partners). Pamela and Wade each have an outside basis in PW equal to $5,000. PW has no liabilities at the time of the liquidation. What is the amount and character of Pamela's recognized gain or loss?
A. $5,000 ordinary income. B. $2,500 capital gain and $2,500 ordinary income. C. $5,000 capital gain. D. $0.
Slick It, Inc. ? Render is a salesperson for Slick It, Inc. Slick It does not sell products with its own brand name. Instead, its products are created for different retail stores and carry the store brand. Render thought that several changes needed to be made to a particular product, but Slick It management reminded him that the stores, not Slick It, owned the brand. ? However, because Slick It had been concerned about dropping sales, management listened to Render's concerns about the company's pricing. He suggested using a different pricing strategy. More specifically, he felt that the company should incorporate a multiple-unit pricing strategy because it would then allow Slick It to set a single price for multiple units. This had the potential of increasing sales and therefore
profits, so management agreed to consider Render's suggestion. Refer to Slick It, Inc. The multiple-unit pricing strategy suggested by Render is a(n) ____ strategy. A. new product B. psychological C. equilibrium D. promotional E. place
In the situational supervision model, the ________ style entails low-directive-low-supportive behavior and is appropriate when interacting with outstanding employees.
A. autocratic B. participative C. laissez-faire D. consultative