Gitis, Inc uses the direct method to prepare its statement of cash flows
Use the following information reported for 2017:
Sales Revenue, $43,000
Interest Revenue, $600
Accounts Receivable, beginning balance, $13,400
Accounts Receivable, ending balance, $26,000
There were no amounts reported for Interest Receivable.
Compute the total cash receipts.
A) $26,000
B) $56,400
C) $31,000
D) $13,400
C .C)
Accounts Receivable beginning balance $13,400
Add: Sales Revenue 43,000
Add: Interest Revenue 600
Less: Accounts Receivable ending balance (26,000 )
Total cash receipts $31,000
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A construction project is expected to take two-and-a-half years to complete. Partial Billings exceeds Construction in Progress. The two accounts are reported together on the balance sheet in the
A) current assets section. B) long-term assets section. C) current liabilities section. D) long-term liabilities section.
Which of the following is an example of a contract that would be governed by Article 2 of the Uniform Commercial Code (UCC)?
A) Bill agrees to sell his farm to Sam for $200,000. B) Chantelle agrees to work for Jenna as her personal secretary for $50 an hour for the next year. C) Dwayne buys a used car from Tom's Autos for $7,000. D) Carlo leases a car for a year from EZ Cars for $2,000 per month.
Revenues and contributions of the stockholders in the business increase equity
Indicate whether the statement is true or false
Susan, the CEO of ABC Company, which was involved in the production and sale of hair care products, decided to hire new employees to develop new product lines for a planned expansion into the dog shampoo arena. She was concerned, however, that the employees specializing in canine products might leave at some point, taking company secrets with them for use in competition with ABC. She, therefore,
required that the employees sign contracts containing covenants not to compete. Susan also consulted her in-house counsel, Sam, regarding the effect of some new regulations involving the use of certain chemicals in shampoo and conditioner. Sam told her, however, to ignore the regulations until some type of investigation of the company was started. Sam says that more than likely no one will ever check to see whether or not ABC is in compliance. Susan disagrees with his advice and decides to seek other counsel. Refer to Fact Pattern 1-1 . The government regulations pertaining to the use of certain chemicals involved which of the following types of law? a. Public b. Private c. Circumscribed d. Tangent