The issuance of common stock in exchange for a building would appear both as a cash inflow in the financing activities section of the cash flow statement and also as a cash outflow in the investing activities section
a. True
b. False
Indicate whether the statement is true or false
False
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Executory costs
A) are included in the minimum lease payments by the lessee. B) should normally be borne by the party that is, in substance, the owner of the asset. C) are the costs incurred by the lessor that are directly associated with negotiating and completing the lease transaction. D) are always paid by the lessee.
It is easier to maintain a running balance with a T account than it is with a ledger account
Indicate whether the statement is true or false
A copyright is obtained for what becomes a very successful book. The publisher expects the book to generate sales for ten years. The copyright should be
a. amortized over the author's life plus 70 years. b. expensed immediately. c. amortized over 10 years. d. amortized over a reasonable life.
Senior management in your organization wants you to explain to the board of directors the key concept that makes compensation systems work. It would be correct to tell them that the ideal compensation system must
A. keep labor costs as low as possible. B. provide for employees needs while keeping labor costs within reasonable limits. C. pay the highest wages in the industry. D. encourage employees to work for as little as possible to keep company profits as high as possible. E. focus attention on benefits rather than on salaries, which are kept low on purpose.