Use the information below to answer the following question(s):Howard Co. uses the direct method to prepare its operating activities section of the statement of cash flows. Indicate how each event affects net income and the three types of activities on the statement of cash flows. In the net income column, use the letter "I" to indicate increase, the letter "D" to indicate decrease, and the letters "NA" to indicate no effect on net income. In the three cash flow columns, use the letter "I" to indicate cash inflow, the letter "D" to indicate cash outflow, and the letters "NA" to indicate no effect on cash flows.Howard Co. made a $25,000 cash payment on a term loan. The payment included a $23,000 reduction of principal as well as $2,000 of interest. (Show the combined effects of the
events.)
What will be an ideal response?
(D) (D) (NA) (D)
A cash payment for interest expense decreases net income. It is reported as a cash outflow in the operating activities section of the statement of cash flows. The cash paid to reduce the principal on a term loan is reported as a cash outflow in the financing activities section of the statement of cash flows.
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The structure of Sandal Mart consists of people with similar specialties put together in formal groups, such as the marketing, accounting, and human resource departments. Sandal Mart has a _____ structure.
A. simple B. focused C. hollow D. functional E. centralized
GreenLawn Co. provides landscaping services to clients. On May 1, a customer paid GreenLawn $72,000 for 6-months services in advance. GreenLawn's general journal entry to record this transaction will include a:
A. Credit to Unearned Revenue for $72,000. B. Credit to Accounts Receivable for $72,000. C. Credit to Cash for $72,000. D. Debit to Unearned Revenue for $72,000. E. Debit to Accounts Receivable for $72,000.
Distinguish between a periodic tenancy and a tenancy for years
One of the reasons for not engaging in measuring effectiveness of promotional programs is a lack of time; however, this can be overcome
A. by creating familiarity sheets. B. by eliminating market segmentation elements. C. with the help of Q scores. D. by determining the source of the problem. E. by identifying source factors.