What is the major advantage of using the direct method of preparing the statement of cash flows?
What will be an ideal response?
Answers will vary.
The direct method is easier for readers to understand and is the method recommended by the Financial Accounting Standards Board.
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Your client left the cash receipts journal open after year-end for an extra day and included January 1 cash receipts in the 12/31/XX totals. All of those cash receipts were due to cash sales. Assuming the client uses a periodic inventory system with a 12/31/XX count of the physical inventory, which of the following is most likely to be true relating to the year XX financial statements?
A. Sales are understated. B. Inventory is overstated. C. Accounts receivable are understated. D. Net income is overstated.
Which tool looks at changes in sales during and after promotional programs to see how the marketing efforts affected company sales?
A. advertising effectiveness B. promotion evaluation C. sales forecasting D. demand analysis E. sales tracking
A personally written message will have more impact on your reader than a ready-made card
Indicate whether the statement is true or false
If you are involved in a traffic accident, which of the following different categories of law might apply to you?
A) The civil law could apply if you were sued by an injured party. B) The criminal law could apply if you were charged with an offence such as dangerous driving. C) Regulatory law could apply if you were charged with a non-criminal offence such as careless driving under the provincial Highway Traffic Act. D) Constitutional law could apply if you were charged with an offence and wishes to argue, for example, that evidence should be excluded because of a violation by the police of your rights under the Charter of Rights. E) All of the above