Both the debit and credit amounts for the income summary account must be extended in the work sheet

Indicate whether the statement is true or false


T

Business

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Which of the following statements is false?

a. The method of preparing the operating activities section of a statement of cash flows which adjusts net income to remove the effects of deferrals and accruals for revenues and expenses is the indirect method. b. The method of preparing the operating activities section of a statement of cash flows which reports major classes of gross cash receipts and cash payments for revenues and expenses is the direct method. c. The FASB prefers the direct method of preparing the operating activities section of the statement of cash flows. d. Most companies use the direct method of preparing the operating activities section of the statement of cash flows.

Business

Subordination means that subsequent creditors agree to wait until all claims of the senior debt are satisfied

Indicate whether the statement is true or false

Business

A purchasing agent who is an owner of 25% of the shares in a supplier does not have a conflict of interest

Indicate whether the statement is true or false

Business

A cost that is assigned to a product using activity-based costing may or may not be a relevant cost in a decision involving that product.

Answer the following statement true (T) or false (F)

Business