Briefly explain the difference between a USE of cash and a SOURCE of cash. Give examples of each. Briefly explain why managers want to know the uses and sources of cash
What will be an ideal response?
Answer: A source of cash involves cash receipts or cash inflow, while a use of cash involves cash disbursements or cash outflow. Examples of uses of cash are: cash purchases (supplies, inventories, etc.); payments made on accounts payable (to suppliers); wages and salaries; rent or lease payments; utility payments (water, electricity, phones, etc.); shipping costs; interest payments; dividend payments; retirement of debt (paying off loans and bonds); and repurchases of stock. Examples of sources of cash are cash sales; payments received on accounts receivables (mainly credit sales); cash sales of equipment or other assets of the company; and funding sources like bank loans, bond sales, and stock sales.
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The entry to record depreciation of the production equipment would be:
a. Debit - Depreciation Expense - Equipment Credit - Accumulated Depreciation - Equipment b. Debit - Depreciation Expense - Equipment Credit - Factory Overhead c. Debit - Factory Overhead Credit - Accumulated Depreciation - Equipment d. Debit - Work-in-Process Credit - Accumulated Depreciation - Equipment
In refusing a request, you should, if possible, share with the reader some of the genuine reasons why his or her request is being rejected
Indicate whether the statement is true or false
Under the Revised Act, dividends must always be paid in money
a. True b. False Indicate whether the statement is true or false
NAICS stands for
A. New Auto Industry Classification System. B. National Automakers Industry Classification System. C. North American Initiative for Competitive Structure. D. North American Industry Classification System. E. National Apparel Industry Classification System.