A firm has arranged for a lockbox system to reduce collection time of accounts receivable. Currently the firm has an average collection period of 43 days, an average age of inventory of 50 days, and an average payment period of 10 days. The lockbox system will reduce the average collection period by 3 days by reducing processing, mail, and clearing float. The firm's cash conversion cycle ________.
A) increases by 3 days
B) decreases by 3 days
C) increases by 6 days
D) decreases by 6 days
B) decreases by 3 days
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An adjusted trial balance is prepared to
a. test that the ledger is in balance after the accounts have been adjusted. b. facilitate preparation of the adjusting entries. c. both test that the ledger is in balance after the accounts have been adjusted and facilitate preparation of the financial statements. d. facilitate preparation of the financial statements.
Which of the following sections of the statement of cash flows include activities that affect net income on the income statement?
A) the financing activities section B) the operating activities section C) the investing activities section D) the non-cash investing and financing section
Denny's Deli, Inc The stockholders' equity section of the December 31, 2011, balance sheet for Denny's Deli appeared as follows: Common stock, $20 par, 40,000 shares issued and outstanding $ 800,000 Additional paid-in capital 320,000 Retained earnings 600,000 Total stockholders' equity $ 1,720,000 Assume that all of the 40,000 shares of Denny's stock that was issued as of December 31, 2011, was
issued for $35 per share. On March 1, 2012, Denny reacquired 5,000 shares of its common stock for $43 per share. Refer to the information presented above for Denny's Deli, Inc How much should be reported on Denny's March 31, 2012, balance sheet for treasury stock? A) $42,000 B) $126,000 C) $162,000 D) $215,000
The crime of bribery occurs when the bribe is offered—it is not required that the bribe be accepted
Indicate whether the statement is true or false