Cash flows from borrowing and paying off a 90-day bank loan are classified as
a. operating activities.
b. investing activities.
c. financing activities.
d. purchasing activities.
c
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A negotiated price should be agreed to only if the opportunity cost of the buying division is less than the opportunity cost of the selling division
Indicate whether the statement is true or false
Which one of the following adjustments decreases net income for the period?
a. Recognition of depreciation on plant assets b. Recognition of interest on a note receivable c. Recognition of services that had been provided to customers but the cash has not yet been received d. Recognition of rent as earned that had been received in advance from customers
You are auditing a store that sells merchandise. Some of the store merchandise is held on consignment. Which account balance assertion for inventory should you be most concerned about verifying?
A. Valuation or allocation. B. Completeness. C. Existence or occurrence. D. Rights and obligations.
Which of the following is FALSE about service recovery?
a. Gather information from customers at the time of service failure so that necessary action can be taken for immediate recovery. b. Conduct a postrecovery assessment to evaluate the recovery performance against the customer. c. Service recovery is unaffected by the strength of the relationship between the customer and the organization. d. Success of service recovery depends on the severity of the failure.