Under the indirect method, an increase in accounts payable is added to net income to determine cash flow from operating activities
a. True
b. False
Indicate whether the statement is true or false
True
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Indicate whether each of the following statements is true or false. ________ a) An appropriation of retained earnings limits the amount available for dividends.________ b) Appropriating retained earnings is considered an asset exchange transaction.________ c) An appropriation is recorded as a decrease to the appropriated retained earnings account and an increase to retained earnings.________ d) One reason for an appropriation of retained earnings is that there may be restrictive covenants in credit agreements.________ e) An appropriation has no effect on the accounting equation.
What will be an ideal response?
What journal entry format is appropriate if sales returns and allowances occur on factored accounts?
A. Sales Returns and Allowances XX Receivable from Factor XX B. Receivable from Factor XX Factoring Expense XX C. Sales Returns and Allowances XX Factoring Expense XX D. Factoring Expense XX Sales Returns and Allowances XX
Juanita is a new college graduate involved in the job search process. What advice will you give her concerning the physical appearance of résumés and accompanying application letters she will mail to potential employers?
a. Color and type of paper can vary between the two documents. b. A one-page format is typically recommended for both documents. c. Most employers will overlook slight errors in punctuation, but spelling should be perfect. d. All of the above
What is a DRIP as it applies to stocks? Suppose you own 5,000 shares of Rough Rider Disposal Inc. and the firm has a DRIP program. Rough Rider pays dividends at the rate of $1.50 per share per year and has a current price of $57 per share
How many additional shares of stock can you receive if you elect to receive your dividends via the DRIP option? What advantage over purchasing the stock on the open market does a DRIP plan offer? What will be an ideal response?