The direct method for the preparation of the operating activities section of the statement of cash flows:
A) Separately lists each major item of operating cash receipts and cash payments.
B) Reports adjustments to reconcile net income to net cash provided or used by operating
activities in the statement.
C) Reports a different amount of cash flows from operations than if the indirect method is used.
D) Is required if the company is a merchandiser.
E) Is required by the FASB.
A) Separately lists each major item of operating cash receipts and cash payments.
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In establishing a petty cash fund, a check is written for the amount of the fund and is recorded as a debit to Accounts Payable and a credit to Petty Cash
Indicate whether the statement is true or false
Which of the following guidelines applies to writing the title of a contract?
a. It should be written in general terms, like "Memorandum of Agreement.". b. It should be written like a sentence, with only the first letter capitalized. c. It should be brief with no more than five words. d. It should be descriptive of the agreement, and typed in all capital letters.
The Theory of Constraints is primarily used to?
a. Identify decision variables b. Identify objectives c. Identify bottlenecks d. Identify resources
Which of the following statements concerning extensions of time to file an individual tax return is false?
A. An extension request must be filed before the end of the taxable year. B. The extended due date of a calendar-year individual tax return is October 15 of the following year. C. The extension of time to file does not extend the time for payment of any tax due. D. An individual may receive an automatic extension of the filing date without providing any explanation to the IRS.