The change in net working capital subtracts beginning net working capital from ending net working capital
Indicate whether the statement is true or false.
Answer: TRUE
You might also like to view...
Investments in equity securities include all of the following except
A. common stocks. B. preferred stocks. C. convertible debt. D. put and call stock options.
Which of the following is not a current reporting requirement for a statement that reports changes in cash over a period of time?
A) This statement must classify cash flows into three categories: operating, investing, and financing activities. B) Cash equivalents must be combined with cash in preparing this statement. C) Working capital may be used as a substitute for cash in preparing this statement. D) The operating activities section can be prepared using either the direct method or the indirect method.
A company using the perpetual inventory system paid cash for freight costs to purchase merchandise. Which of the following reflects the effects of this event on the financial statements? Asset=Liab.+Stk.EquityRev.-Exp.=Net Inc.Stmt ofCash FlowsA.-=NA+-NA-NA=NA-OAB.+-=NA+NANA-NA=NA-OAC.+-=NA+NANA-NA=NA NAD.+-=NA+NANA-+=--OA
A. Option A B. Option B C. Option C D. Option D
A partner has a 20% interest with a basis of $6,000 in XYZ before receiving a liquidating distribution of $10,000 cash. XYZ Partnership has no liabilities. His recognized gain is
The XYZ Partnership owns the following assets on December 31:
A) $4,000 capital gain.
B) $3,000 capital gain and $1,000 ordinary income.
C) $3,000 ordinary income.
D) $3,000 ordinary income and $1,000 capital gain.