Answer the following statements true (T) or false (F)
1. Greene Electric Company uses the direct method to prepare its statement of cash flows. Greene has reported cost of goods sold of $85,000 on its income statement for 2018. If the balance in Accounts Payable, for merchandise inventory suppliers only, has decreased by $8,000 during the year, then $8,000 needs to be subtracted from $85,000 to calculate payments to suppliers for merchandise inventory purchases.
2. Lightning Electric Company uses the direct method to prepare its statement of cash flows. Lightning has reported operating expenses of $63,000 on its income statement for the year 2019. If the balance in accrued liabilities has increased by $6,000 during the year, then $6,000 needs to be added to $63,000 to calculate payments to suppliers for operating expenses. Accrued liabilities relate to operating expenses.
3. Using the direct method, interest expense paid on a note payable is included in the operating activities section of the statement of cash flows.
4. In practice, most companies face complex situations. In these cases, a spreadsheet can help in preparing the statement of cash flows.
5. The spreadsheet starts with the beginning statement of cash flows and concludes with the ending statement of cash flows.
6. Accountants can prepare the statement of cash flows directly from the lower part of the spreadsheet.
1. FALSE
2. FALSE
3. TRUE
4. TRUE
5. FALSE
6. TRUE
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Ben believes his roommate is “kind” and “helpful.” Ben also thinks that he is probably a “hard worker” who “gives of his time” to others. What aspect of cognitive complexity is Ben demonstrating in his thinking process?
a. He can think in abstract terms. b. He uses numerous interpersonal constructs to decipher his roommate’s behavior. c. He is able to organize information to make sense of his roommate. d. He is capable of handling contradictions in his roommate’s behavior.
Refer to Data Table A. The value 13.10 is the ______.
A. grand mean
B. average of values for Item 1
C. average of values for Item 2
D. average of values for Item 3
A merchandiser's operating cycle concludes with the sale of goods
Indicate whether the statement is true or false
Deciding whether or not an investment meets a predetermined company standard is called a:
A) preference decision. B) payback decision. C) screening decision. D) profitability decision.