Assume the indirect method is used to compute net cash flows from operating activities. For this item extracted from the financial statements-Gain on Sale of Investment-indicate the effect on net income in arriving at net cash flows from operating activities by choosing one of the following:
A) Add to net income to arrive at net cash flows from operating activities.
B) Subtract from net income to arrive at net cash flows from operating activities.
C) Not used to adjust net income to calculate net cash flows from operating activities.
B
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Indicate whether the statement is true or false
A salesperson can minimize exposure to costly misrepresentation and breach of warranty lawsuits if he/she:
A. thoroughly educates customers before making a sale. B. offers opinions when the customer asks what result a product will accomplish. C. never negotiates. D. avoids win-win sales situations. E. never sells the customer more than he/she wants.
Faith owns a copyright in a book she recently wrote. She applies for a $10,000 loan through Cumberland Bank and wants to use the copyright as collateral. Explain if and how the bank can perfect a security interest in such collateral
Under FIFO, the most recent costs are assigned to ending inventory.
Answer the following statement true (T) or false (F)