Which of the following would not be considered a contingent liability?
A. Frequent flyer miles earned by passengers
B. Pending lawsuits
C. Cash received from advance ticket sales
D. Products sold with a warranty
Answer: C
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Which of the following statements contradicts the philosophy underlying the just-in-time operating environment?
A) The work force must become multiskilled in order to operate different machines and perform other tasks in the work cell. B) A customer order triggers the purchase of materials and the activation of the production process. C) Large inventories are maintained in order to fulfill customer orders on a timely basis. D) Flexible work cells are created to increase productivity.
Recent advances in technology have enabled ______.
A. suppliers to charge a higher price for their services B. greater choice of service processes C. suppliers to circumvent government regulations more easily D. suppliers to circumvent ISO requirements more easily
A firm’s primary goods and services suppliers are referred to as:
a. First-tier suppliers b. Market winners c. Third echelon suppliers d. Customers
If a loss of $12,500 is incurred in selling (for cash) office equipment having a book value of $50,000, the total amount reported in the cash flows from investing activities section of the statement of cash flows is
A) $37,500. B) $50,000. C) $62,500. D) $12,500.