The Responsible Company completed the following transactions involving investments during 2012. Purchased 20-year treasury bonds for $80,000 Sold available-for-sale securities (cost $80,000 ) for $100,000 Purchased trading securities for $55,000 Responsible uses the indirect method to prepare the operating activities section of the statement of cash flows. The following statements describe how
Responsible reported the cash flow effects of the transactions above on its 2012 statement of cash flows. Which of the following has been reported incorrectly by Responsible?
A) Payments of $80,000 for 20-year treasury bonds were reported as a cash outflow in the operating activities section.
B) Proceeds of $100,000 were reported as a cash inflow in the investing activities section.
C) Payments of $55,000 for trading securities were reported as a cash outflow in the investing activities section.
D) A gain of $20,000 on the sale of available-for-sale securities was deducted from net income in the operating activities section.
A
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In the appreciative inquiry process, which of the following is a criterion that must be met for the employee’s new one-sentence mission statement to be valid?
a. The mission is achievable. b. The mission improves the ecological profile of the company. c. The mission will increase company profits. d. The mission statement is approved by a majority of team members.
Short-term investments in held-to-maturity debt securities are accounted for using the:
A. Fair value method with fair value adjustment to income. B. Cost method without amortization. C. Fair value method with fair value adjustment to equity. D. Equity method. E. Cost method with amortization.
Diamond Plywood, Inc., manufactures four types of plywood panels. Each product must go through the following operations: patching, grading, gluing, and baking. The time in hours required for each operation for each panel, the total capacity available for each of these operations in a given month, as well as the minimum production requirements and the profit contributions per panel are given in the following table. Based on this information, at the optimal production point what is the quantity of hardwood plywood panels that Diamond Plywood will produce?
A. 1,050
B. 840
C. 925
D. 150
A group of salespeople that meets with customers in a manner that is not face-to-face is known as a(n) ________ sales force.
A. inside B. territorial C. team selling D. major accounts E. specialized