The method of reporting cash flows from operating activities that does not involve adjusting net income is called the
a. indirect method; b. direct
method; c. nonadjusted method; d. combined method; e. simplex method.
B
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Ramirez Company returns merchandise previously purchased on account. It had not yet been paid for. Ramirez uses the perpetual inventory system. Which of the following reflects the effects on the financial statements of only the purchase return? Asset=Liab.+Stk.EquityRev.-Exp.=Net Inc.Stmt ofCash FlowsA.+=NA+---NA=-+OAB.-=-+NANA-+=-NAC.+-=NA+NANA-NA=NA+OAD.-=-+NANA-NA=NANA
A. Option A B. Option B C. Option C D. Option D
Determining the unit costs assigned to inventory items is one of the most important decisions in accounting for inventory.
Answer the following statement true (T) or false (F)
Rawhide Outfitters had projected its sales for the first six months of 2012 to be as follows:
Jan. $50,000 April $180,000 Feb. $60,000 May $240,000 Mar. $100,000 June $240,000 Cost of goods sold is 60% of sales. Purchases are made and paid for two months prior to the sale. 40% of sales are collected in the month of the sale, 40% are collected in the month following the sale, and the remaining 20% in the second month following the sale. Total other cash expenses are $40,000/month. The company's cash balance as of March 1st, 2012 is projected to be $40,000, and the company wants to maintain a minimum cash balance of $15,000. Excess cash will be used to retire short-term borrowing (if any exists). Fielding has no short-term borrowing as of March 1st, 2012. Assume that the interest rate on short-term borrowing is 1% per month. How much short term financing is needed by March 30, 2012? A) $70,000 B) $15,000 C) $110,000 D) $85,000
When a securities professional buys and sells excessive amounts of stock for a client's account to make extra-large commissions from the trades, she is:
a. kiting b. insider trading c. dealing d. scalping e. none of the other choices