Last year Maine Company reported a cost of goods sold of $110,000. Inventories increased by $30,000 during the year, and accounts payable decreased by $15,000. The company uses the direct method to determine the net cash flows from operating activities on the statement of cash flows. The cost of goods sold adjusted to a cash basis would be:
A) $140,000.
B) $65,000.
C) $125,000.
D) $155,000.
D
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The if-converted method of computing EPS data assumes conversion of convertible securities at the
a. beginning of the earliest period reported (or at time of issuance, if later). b. beginning of the earliest period reported (regardless of time of issuance). c. middle of the earliest period reported (regardless of time of issuance). d. ending of the earliest period reported (regardless of time of issuance).
U.S. GAAP and IFRS provide criteria for distinguishing operating leases from capital leases. Which of the following is not true?
a. Under the capital, or finance, lease method, the lessor records the signing of a capital lease the same as if the lessor sold the leased asset for an installment note receivable. b. Under the capital, or finance, lease method, the lessee recognizes interest expense on the lease liability, similar to recognizing interest expense on long-term notes or bonds. c. Under the capital, or finance, lease method, the lessee amortizes the leased asset, similar to recognizing depreciation on buildings and equipment. d. Under the capital, or finance, lease method, the lessor records the leased asset and the lease liability on the balance sheet at the present value of the contractual cash flows at the time of signing the lease. e. The capital, or finance, lease method, treats leases equivalent to installment purchases or sales, where the lessee borrows funds from the lessor to purchase the asset and the lessor recognizes profit at the time of sale.
Deductibles are not used in which of the following type of insurance?
A) life insurance B) health insurance C) property insurance D) disability income insurance
If an advertiser refuses to comply with rulings made by the National Advertising Review Board (NARB), the NARB is most likely to
A. lodge a class action suit for customers who have been in some way negatively affected by the ad. B. order the advertiser to stop running the ad. C. refer the matter to an appropriate federal agency. D. impose a fine. E. refer the case to an industry trade association.