If an expense has been incurred but will be paid later, then:
A. a liability account is created or increased and an expense is recorded.
B. nothing is recorded on the financial statements.
C. an asset account is decreased or eliminated and an expense is recorded.
D. a revenue and an expense are accrued.
Answer: A
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The direct method of reporting cash flows from operating activities involves reconciling net income and cash flow from operations
a. True b. False Indicate whether the statement is true or false
On a statement of cash flows prepared using the direct method, if inventory has decreased from one accounting period to another, net purchases will be greater than the cost of goods sold because net purchases during the period have exceeded the dollar amount of the items sold during the period
Indicate whether the statement is true or false
In packaging, dye packs are ______.
a. freebies for people who wish to dye their hair b. used to prevent theft c. often made available in different colors d. used to increase the manufacturing cost of a product
The management of Crimson, a cosmetics company, has entrusted its HR department with the responsibility of organizing fund-raisers to create awareness about various issues related to women and children. The management also supports volunteer activities by matching employee contributions to local charities. By engaging in these activities, the management of Crimson is fulfilling the human resource management goal of:
A. complying with and meeting social obligations. B. adhering to legal guidelines. C. facilitating organizational competitiveness. D. enhancing productivity and quality.