A medical doctor incorporates her medical practice, which is operated as a sole proprietorship. The proprietorship uses the cash method of accounting. Among the assets contributed to the new corporation are unrealized receivables worth $40,000. The receivables are collected by the corporation. Which of the following statements is correct?
A) The $40,000 of receivables is included as ordinary income on the doctor's personal income tax return when collected by the corporation.
B) The doctor must include the $40,000 as ordinary income in her personal income tax return at the time of incorporation.
C) The $40,000 of receivables is included as ordinary income in the corporation's income tax return at the time of incorporation.
D) The $40,000 of receivables is included as ordinary income in the corporation's income tax return when collected.
D) The $40,000 of receivables is included as ordinary income in the corporation's income tax return when collected.
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The following information is reported in the operating activities section of Gateway's statement of cash flows for 2016: Net income $1,200,000 Increase in inventories 600,000 Decrease in accounts payable 400,000 Which one of the following conclusions can be assumed from the information provided?
a. Gateway purchased more merchandise than it sold in 2016. b. Cash payments for merchandise exceeded cost of goods sold by $200,000. c. Gateway used the direct method to determine cash flows from operating activities. d. Cash payments for merchandise purchases were less than the amount of merchandise purchased on credit during 2016.
Answer the following statement(s) true (T) or false (F)
1. The skill objectives of training focus on developing attitudes, concepts, and an understanding of the organization. 2. Vestibule training utilizes simulations or a mock-up of the actual work area. 3. The term training is generally associated with any employee, nonmanagerial and managerial alike. 4. In a managerial understudy training program, the supervisor teaches job knowledge and skills to a subordinate through instructions, directions, correcting, and evaluating. 5. The oldest, easiest to use, and most accurate performance appraisal system is the graphic rating scale.
Which of the following instruments is binding in its entirety on those to whom it is addressed?
a. The regulation b. The recommendation c. The decision d. The directive
An heir of a person who dies receives title to the property of the decedent by reason of a gift
Indicate whether the statement is true or false