Compare and contrast the Income Statement and the Statement of Cash Flows.
What will be an ideal response?
The income statement takes sales (or revenue) and subtracts cost of goods sold to get gross margin, then subtracts operating expenses, non-operating (interest income/expense, gains on sale of assets, etc.) and taxes to get to net income. The Statement of Cash Flows takes the income statement (prepared on accrual accounting) and converts it to a cash basis statement. Then the information is reported in three categories: operating, financing, and investing. Another purpose of the cash flow statements is to analyze the changes in the cash account, starting with the beginning balance and ending with the ending balance.
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A broad differentiation strategy generally produces the best results in situations where
A. new and improved products are introduced only infrequently. B. perceived value of a product is not of great importance. C. most rivals are pursuing a differentiation strategy and are seeking to differentiate their products on most of the same features and attributes. D. buyer brand loyalty is low. E. few rival firms are following a similar differentiation approach.
You will not be able to communicate effectively if
A) you convey your message through verbal and nonverbal means. B) your message contains words that the audience cannot understand. C) you use low-tech media options. D) you fail to use current technology.
Use the information in Scenario 9.8. What is the desired safety stock level if the company has a policy of maintaining a 90% cycle-service level?
A) less than or equal to 50 units B) greater than 50 but less than or equal to 100 units C) greater than 100 but less than or equal to 150 units D) greater than 150 units
________ occurs when the collaboration tool limits and sometimes even directs user activity.
A. Version control B. Using a file server C. Microsoft Word D. Version management E. Sharing content