When preparing a statement of cash flows under the indirect method, an increase in ending accounts receivable over beginning accounts receivable will result in an adjustment to net income in the operating activities section because
A) cash was increased since accounts receivable is a current asset.
B) the accounts receivable increase was a revenue included in net income, but it was not a source of cash.
C) the net increase in accounts receivable decreases net sales and represents an assumed use of cash.
D) all changes in noncash accounts must be disclosed on the cash flow statement.
B
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Answer the following statement true (T) or false (F)
On May 1, Sellers Marketing Company received $1,500 from Franco Marcelli for a marketing campaign effective from May 1 of the current year to April 30 of the following year. The Cash receipt was recorded as unearned fees and at year-end on December 31, $1,000 of the fees had been earned. Assuming adjustments are only made at year-end, the adjusting entry on December 31 would be:
A. A debit to Fees Earned and a credit to Unearned Fees for $500. B. A debit to Unearned Fees and a credit to Fees Earned for $1,000. C. A debit to Unearned Fees and a credit to Cash for $500. D. A debit to Fees Earned and a credit to Cash for $500. E. A debit to Fees Earned and a credit to Cash for $1,000.
The principle behind the quasi contract is to prevent unjust enrichment
Indicate whether the statement is true or false
Scenario B: Henry was having a few friends over for dinner, many of whom Henry knew from an international management association. Henry's company provides services to create detailed maps of world areas from satellites, which the firm then sells via the Internet to firms, countries, and others around the world. One of his guests, Tamia, bakes cakes for a living. Her recipes are so well liked that her company has grown dramatically. She has just sold the right to manufacture her cakes to a firm in eastern Alpland. Another friend, Chang, is a director at InSpiral, and his wife, Chloe, has contracted with the breakfast chain Flapjack Frank's to open a branch in their state, bearing all the preliminary expenses and development costs. Chang also announced that InSpiral and another company,
McElwee's, are starting a new venture. Finally, Kamala works for New Frontier technologies, which is headquartered in her home country, and is soon to go abroad to work in New Frontier's new facility, which is an independent company that New Frontier owns and controls in another country. The guests were discussing how their companies decided to "go global."In Scenario B, which of the following ways of entering into the global marketplace are InSpiral and McElwee's using together? A. exporting B. wholly owned subsidiaries C. licensing D. joint ventures E. franchising