The direct method of reporting the cash flows from operating activities on the statement of cash flows is the method most widely used in practice
Indicate whether the statement is true or false
False
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Which of the following is not true concerning the recognition of unrealized gains and losses on foreign currency translation during the consolidation process?
a. Firms do not recognize these gains/losses in current income. b. Firms recognize these gain/losses in the statement of other comprehensive income c. Firms increase/reduce their investment accounts by the translation gains/losses d. Unrealized gains and losses increase/decrease other accumulated comprehensive income in shareholders' equity.
Which of the following statements is true of financial and managerial accounting?
A) Both use historical costs as their primary unit of measurement. B) Both depend on the double-entry system of accounting. C) Both require adherence to generally accepted accounting principles. D) Both assist managers in decision making.
The buffer in a bad-news message is a A) hint that good news will follow
B) statement completely unrelated to the bad news so that receivers will not know that bad news is coming. C) statement that reduces shock or pain and encourages the receiver to continue reading. D) denial of the requested action.
Tim buys a high-powered tool from Binford Tools to use on the construction of his own garage. Binford Tools provides a full warranty on the tool for the first six months. To pay for the tool, Tim signs a negotiable promissory note which contains the FTC Consumer Credit Notice. Binford properly negotiates the note to First Finance. Within three weeks, the tool stops working and Binford refuses to
repair or replace it. In the meantime, First Finance demands payment from Tim. Under the Federal Trade Commission rules, this consumer credit situation means First Finance a. can collect if it is a holder in due course. b. can collect if it is not a holder in due course. c. can collect whether or not it is a holder in due course. d. cannot collect.