Under the direct method of determining the net cash provided by (used in) operating activities on the statement of cash flows, one step in adjusting selling and administrative expenses from an accrual to a cash basis is to subtract any increase in prepaid expenses.
Answer the following statement true (T) or false (F)
False
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York Merchandising Company uses a perpetual inventory system. At the end of the accounting period, a physical count of merchandise inventory reveals a balance of $76,500. The books show a balance of $78,200.
(a) Prepare the adjusting entry. Omit explanation. (b) Discuss the possible causes for the difference between the physical count and the balance in the books. (c) How does this affect net income?
What is the ratio of sales to total assets for Diane Company?
a. 1.00 b. 2.94 c. 0.18 d. 0.34
Fetzer Company declared a $0.35 per share cash dividend. The company has 400,000 shares authorized, 380,000 shares issued, and 16,000 shares in treasury stock. The journal entry to record the payment of the dividend is:
A. Debit Common Dividends Payable $127,400; credit Cash $127,400. B. Debit Retained Earnings $133,000; credit Common Dividends Payable $133,000. C. Debit Common Dividends Payable $133,000; credit Cash $133,000. D. Debit Retained Earnings $140,000; credit Common Dividends Payable $140,000. E. Debit Retained Earnings $127,400; credit Common Dividends Payable $127,400.
One of the four goals of delivering bad news is to ________
A) state the news clearly, yet sensitively B) protect the audience's self-esteem by only hinting at the news C) offend your audience if necessary to get the message across D) gloss over the facts that may cause legal complications E) budget additional time to re-explain the message