The extent to which a firm adjusts net income for changes in noncurrent assets and noncurrent liabilities in deriving cash flow from operations under the indirect method depends on the nature of its operations. Firms that stop growing or that shrink usually
a. show an addback for deferred tax expense.
b. show a subtraction for deferred tax expense.
c. show no adjustments for deferred tax expense.
d. disclose such changes in a supplementary schedule or notes to the financial statements.
e. disclose such changes in managements' discussion and analysis.
B
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Which of the following is not a reason for the issuance of long-term liabilities?
A) Debt financing offers an income tax advantage. B) Debt financing dilutes ownership interest. C) Debt may be the only available source of funds. D) Debt financing may have a lower cost.
Joseph Juran defined quality as "fitness for use," which means that
A. a product or service should be priced competitively. B. an organization should produce products that will help customers stay healthy. C. companies should focus on products that help the community. D. products should be very durable. E. a product or service should satisfy a customer's real needs.
______ is intentional behavior that has the potential to cause great harm to another or to the company.
A. Management counseling B. Accident C. Gross negligence D. Serious misconduct
Which of the following indicates that the cost of money will increase?
A. Increase in the rate of inflation in an economy B. Increase in liquidity of an asset C. Decrease in federal deficit of a country D. Increase in money supply E. Decrease in tax rates for corporations