The following items were reported on the balance sheets and income statement for Hawley Company: Accounts receivable, December 31, 2011 $100,000 Accounts receivable, December 31, 2012 144,000 Sales--2012 945,000 How would the change in accounts receivable be reported in the operating activities section of Hawley's statement of cash flows under the indirect method?
A) As an addition to sales
B) As a deduction from sales
C) As an addition to net income
D) As a deduction from net income
D
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A question asked by stockholders is, "How much profit did the company make?" What should the stockholder examine to get the most information that will help evaluate the answer to this question?
a. The balance sheet, because retained earnings represents current profits b. The statement of cash flows, as cash inflows and outflows represents current profits c. The income statement, since it shows the revenues and expenses for the period d. The economic resources of the company
Meredith has a vacation rental house in the Sierra Mountains. During the year, she and her immediate family used the house for 12 days for a personal vacation. Meredith spent two more weekends (4 days in total) repairing the deck. Meredith also rented her house (at fair value) to her brother and his family for 9 days (in addition to her personal use). The house was rented for 180 days. How should the cabin be categorized this year for tax purposes? Explain your answer.
What will be an ideal response?
Risks ordinarily assumed in business constitute consideration for the modification of a contract
Indicate whether the statement is true or false
A lessor is a party who transfers the right to the possession and use of goods under a lease
Indicate whether the statement is true or false