Unknown hazards cases involve products whose dangers are known by the manufacturer at the time they are produced, but are ignored until a later date
a. True
b. False
Indicate whether the statement is true or false
False
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Below is information for Toronto Imports Corp for 2015 and 2016: Bonds payable, December 31, 2015 $500,000 Bonds payable, December 31, 2016 800,000 Loss on bond retirement—2016 15,000 Interest expense on bonds—2016 45,000 At the end of 2016, Toronto issued bonds at par value for $800,000 cash. The proceeds from these bonds were used to retire the $500,000 bond issue outstanding at the end of
2015 (before their maturity date). All interest expense was paid in cash during 2016. The following statements describe how Toronto reported the cash flow effects of the items described above on its 2016 statement of cash flows. The indirect method is used to prepare the operating activities section. Which of the following has been reported incorrectly by Toronto? a. Proceeds of $800,000 from the issuance of bonds were reported as a cash inflow in the financing activities section. b. The loss on bond retirement of $15,000 was added to net income in the operating activities section. c. Payments of $560,000 were reported as a cash outflow in the investing activities section. d. Interest expense of $45,000 was not reported separately because it is included in net income in the operating activities section.
Suppose you borrowed $15,000 at a rate of 8.5% and must repay it in 5 equal installments at the end of each of the next 5 years. By how much would you reduce the amount you owe in the first year?
A. $2,404.91 B. $2,531.49 C. $2,658.06 D. $2,790.96 E. $2,930.51
When a company discontinues a segment, total corporate costs may decrease in all of the following categories except
a. variable production costs. b. allocated common costs. c. direct fixed costs. d. variable period costs.
Packaging is often
A. not considered part of the total product, allowing variations. B. changed due to legal restrictions. C. a secondary consideration in product aesthetics. D. not standardized due to cultural preferences for color.