General Motors decides to close one of its manufacturing plants in the Midwest. GM sells the facility to a new foreign automobile manufacturer. The money GM receives from this sale would belong in the ____ section of the statement of cash flows.
A. operating
B. investing
C. business
D. selling
E. financing
Answer: B
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The ________ environment refers to the local, state, national, and global laws and regulations that affect businesses
A) political and legal B) sociocultural C) economic D) technological E) natural
Firms account for leases using either the operating lease method or the capital (finance) lease method. Which of the following is true?
a. The operating lease method treats leases as executory contracts. b. The operating lease method recognizes a leased asset on the lessee's statement of cash flows. c. The operating lease method recognizes a lease liability on the lessee's balance sheet. d. Under the operating lease method, the lessor does not recognize rent revenue as the lessee uses the leased asset over time. e. Under the operating lease method, the lessee does not recognize rent expense as the lessee uses the leased asset over time.
Which of the following is true?
A. The departmental overhead rate is not usually based on measures closely related to production volume. B. The departmental overhead rate is most accurate in assigning overhead costs that are not driven by production volume. C. Allocated overhead costs will be the same no matter which allocation method is used. D. When cost analysts are able to logically trace cost objects to costs, costing accuracy is improved. E. Overhead costs are often affected by many issues and are frequently too complex to be explained by any one factor.
Disruptive technologies may result in worse performance (at least in the short term) for:
a. New products b. Existing products c. Services d. Firms