Which of the following statements regarding a statement of cash flows is false?
A) The most common method used by most companies for reporting operating activities is the direct method.
B) Operating activities include all transactions and other events related to the earnings process.
C) It requires a reconciliation of beginning and ending cash balances.
D) It helps users assess a company's need for external financing.
A
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A decline in purchasing power is evidenced by all of the following except:
a. inflation. b. a continuing rise in the general level of prices in an economy. c. buying the same amount of goods or services for a higher price a year later. d. current value is equal to historical cost.
Amy believes she can carry out the task assigned by her supervisor. This is which element of psychological empowerment?
A. impact B. meaning C. competence D. self-determination
Trevor went to the store to get a new pair of running shoes but the store was temporarily out of the brand he normally buys. What is the term for this situation?
A. a stockout B. a backorder C. derived demand D. cognitive dissonance
In its first year of business, Borden Corporation had sales of $2,040,000 and cost of goods sold of $1,220,000. Borden expects returns in the following year to equal 7% of sales. The adjusting entry or entries to record the expected sales returns is (are):
A.
| Accounts Receivable | 2,040,000? | |
| Sales | 2,040,000? |
B.
| Sales Returns and Allowances | 142,800? | |
| Sales Refund Payable | 142,800? | |
| Inventory Returns Estimated | 85,400? | |
| Cost of goods sold | 85,400? |
C.
| Sales returns and allowances | 142,800? | |
| Sales | 142,800? | |
| Cost of Goods Sold | 85,400? | |
| Inventory Returns Estimated | 85,400? |
D.
| Sales | 2,040,000? | |
| Sales Refund Payable | 142,800? | |
| Accounts receivable | 1,897,200? |
E.
| Sales Refund Payable | 142,800? | |
| Accounts receivable | 142,800? |