The primary difference between a cash flow statement prepared using the indirect method and one prepared using the direct method is
a. the financing section is different.
b. the investing section is different.
c. the operating section is different.
d. all three sections of the cash flow statement are different.
e. the investing and financing sections are different.
C
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Exhibit 20-4 On January 1, 2016, Average Leasing Company entered into a direct financing lease with a lessee, Lenny Company. The lease agreement calls for five equal annual payments of $75,000 at the beginning of each year with the first payment due on January 1, 2016. The leased property has an estimated residual value of $10,000, which Lenny does not guarantee. The property remains the property
of Average at the end of the lease term. Average desires a 12% rate of return. Present value factors for a 12% interest rate are as follows: Present value of $1 for n = 1 0.892857 Present value of $1 for n = 5 0.567427 Present value of an ordinary annuity for n = 5 3.604776 Present value of an annuity due for n = 5 4.037349 ? Refer to Exhibit 20-4. What is the amount of interest revenue that Average should recognize on the lease for the year ended December 31, 2016 (round the answer to the nearest dollar)? A) $37,017 B) $28,017 C) $36,336 D) $27,336
Answer the following statement(s) true (T) or false (F)
1. An idea could be classified as a product. 2. Milk and bread are examples of convenience products. 3. A Rolex watch is an example of a shopping product. 4. If an organization utilizes computers in carrying out their operations, those computers are classified as industrial products. 5. Labor-intensive services are especially easy to standardize.
Maya, a police officer, wants to search the offices of Niles Corporation. Maya asks Judge Orion to issue a warrant. Under the Fourth Amendment, no warrants for a search or an arrest can be issued without
a. double jeopardy. b. probable cause. c. reasonable doubt. d. immunity.
Larry wanted to buy a 1957 Cadillac once owned by Reggie Jackson. Larry entered into a contract with the owner agreeing to pay $102,000. The owner subsequently changed his mind. If Larry sues, what remedies are potentially available?