Under the direct method, which one of the following would represent cash paid?
A) gains on sales of plant assets
B) losses on sales of plant assets
C) depreciation expense, adjusted for changes in depreciation methods
D) interest expense, adjusted for changes in interest payable and amortization of bond premium or discount
D
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Long-term assets that are intangible have no physical substance
Indicate whether the statement is true or false
When production is more than sales, which of the following is true?
a. Absorption costing results in a lower net operating income than variable costing. b. The use of both the costing methods will result in the same net operating income. c. Absorption costing results in a higher net operating income than variable costing. d. Absorption costing results in a higher total operating expenses than variable costing.
According to the book, in what situations should others NOT be engaged in action planning?
a. When employees may not agree with the plan b. When there is little respect for the senior leadership c. When there are too many opinions to consider d. When there is too much competitive risk and plans should be kept secret
Which of the following guidelines for writing messages extending credit is FALSE?
a. The writer should include the credit terms. b. The writer should include the penalty fee for a late payment. c. The writer should omit any mention of sales promotion or resale. d. None of the above is false.