Costs other than direct materials cost and direct labor cost incurred in the manufacturing process are classified as factory overhead cost
Indicate whether the statement is true or false
True
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To record wages earned but not paid under the modified cash basis of accounting would require
a. debiting Wages Payable and crediting Wages Expense; b. debiting Cash and crediting Wages Expense; c. debiting Wages Expense and crediting Wages Payable; d. debiting Prepaid Wages and crediting Wages Payable; e. none of these
Answer the following statements true (T) or false (F)
1. When preparing the statement of cash flows using the indirect method, a loss on the sale of plant assets must be shown as a subtraction from the investing activities section.
2. When preparing the statement of cash flows using the indirect method, a decrease in current liabilities is added to the net income to arrive at net cash provided by operating activities.
3. While preparing a statement of cash flows using the indirect method, an increase in current assets is added to net income to arrive at net cash provided by operating activities.
4. The change in Accounts Receivable is shown as a negative cash flow in the adjustments to net income.
Shell, Inc. uses the indirect method to prepare the statement of cash flows. Refer to the following section of the comparative balance sheet:
“The degree to which a person is imaginative, broad minded, curious, and seeks new experiences” is which of the Big Five dimensions of personality?
a. Conscientiousness b. Extraversion/introversion c. Openness to experience d. Emotional stability
A company is most likely to utilize the specific identification method if its inventory consists of:
A. A relatively small number of products. B. Unique products. C. Very expensive products. D. All of the other answers are reasons to utilize the specific identification method.