Which of the following statements is true?
a. If a company reports net income on its income statement, it should report an increase in cash on its statement of cash flows.
b. If a company reports a net loss on its income statement, it should report a decrease in cash on its statement of cash flows.
c. If a company uses the accrual basis of accounting, it will improve its cash position if it reports net income for the same period.
d. If a company uses the accrual basis of accounting, its cash balance can increase even if it reports a net loss.
d
You might also like to view...
_______ generates 75 percent of its electrical energy by nuclear power.
Fill in the blank(s) with the appropriate word(s).
________ refers to all manufacturers, distributors, wholesalers, retailers, lessors, and subcomponent manufacturers involved in a transaction
A) Demand chain B) Chain of command C) Chain of distribution D) Value chain
Fragmental Co. leased a portion of its store to another company for eight months beginning on October 1, at a monthly rate of $1050. Fragmental collected the entire $8400 cash on October 1 and recorded it as unearned revenue. Assuming adjusting entries are only made at year-end, the adjusting entry made by Fragmental Co. on December 31 would be:
A. A debit to Cash and a credit to Rent Revenue for $8400. B. A debit to Unearned Rent and a credit to Rent Revenue for $5250. C. A debit to Rent Revenue and a credit to Cash for $3150. D. A debit to Unearned Rent and a credit to Rent Revenue for $3150. E. A debit to Rent Revenue and a credit to Unearned Rent for $3150.
The operational parameter concerned with the number of workers/units of capacity needed for production is
A) production rate. B) workforce. C) overtime. D) backlog.