When the direct method is used to prepare the operating activities section of the statement of cash flows, cash inflows from customers and cash outflows for depreciation are among the categories of cash flows likely to be reported.
Answer the following statement true (T) or false (F)
False
Depreciation expense is a noncash expense.
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The Sales Revenue, Delivery Expense, and Sales Discounts Forfeited accounts will be closed via the ________ account.
A) Income Summary B) Retained Earnings C) Dividends D) Stockholders' Equity
Collateral agreements for a note or bond can:
A. Increase the risk of loss in comparison with unsecured debt. B. Reduce the issuer's assets. C. Have no effect on risk. D. Increase total cost for the borrower. E. Reduce the risk of loss in comparison with unsecured debt.
On January 1, Year 1, Ballard company purchased a machine for $52,000. On January 1, Year 2, the company spent $12,000 to improve its quality. The machine had a $4,000 salvage value and a 6-year life, which are unchanged. Ballard uses the straight-line method. What is the book value of the machine on December 31, Year 4?
A. $20,800 B. $10,400 C. $24,800 D. $24,000
Lostowne was economically depressed until Sally's Firecracker Corp moved its factory there. Test explosions and the acrid smell of sulfur then interfered with Bob's enjoyment of the old family home. Bob sues Sally for nuisance and seeks a court-ordered injunction to close down the factory. In determining whether the injunction is appropriate, the court will:
a. "balance the equities." b. consider the gravity of harm to Bob and his family. c. consider the social value of Sally's business. d. consider the public interest in the jobs created by Sally's and the economic upturn in Lostowne. e. All of these.