In preparing a company's statement of cash flows for the year just ended, the following information is available: Loss on the sale of equipment$14,000Purchase of equipment 225,000Proceeds from the sale of equipment 106,000Repayment of outstanding bonds 87,000Purchase of treasury stock 25,000Issuance of common stock 96,000Purchase of land 115,000Increase in accounts receivable during the year 33,000Decrease in accounts payable during the year 75,000Payment of cash dividends 35,000Net cash flows from financing activities for the year were:
A. $26,000 of net cash used.
B. $51,000 of net cash used.
C. $340,000 of net cash used.
D. $347,000 of net cash used.
E. $147,000 of net cash used.
Answer: B
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George is buying his first house. He has spent a month looking at houses and comparing attributes such as price and location. He has contacted several real estate agents to look at different types of houses. George is most likely exhibiting ________
A) variety-seeking buying behavior B) complex buying behavior C) consumer capitalism D) dissonance-reducing buying behavior E) marketing myopia
Explain the concept of reputation management and discuss the controversies associated with publicizing corporate good deeds.
What will be an ideal response?
Spencer Co. decides to establish a petty cash fund with a beginning balance of $200. The company decides that any purchase under $25 can be processed through petty cash instead of the voucher system. The journal entry to record establishing the account is:
A. Debit Cash $200 and credit Cash Over and Short $200. B. Debit Petty Cash $200; credit Cash $175; and credit Cash Over and Short $25. C. Debit Cash $200 and credit Petty Cash Over and Short $200. D. Debit Petty Cash $200 and credit Cash $200. E. Debit Cash $200 and credit Petty Cash $200.
Grand Metropolitan is a consumer foods company headquartered in the United Kingdom. It has followed the common practice in the U.K. of treating expenditures on product development, quality control, and advertising as an expense each year. Grand Metropolitan has now decided to recognize the full value of its brand names as an asset on the balance sheet as of September 30, Year 6 . To keep the
balance sheet in balance and in accordance with U.K. practice, Grand Metropolitan will likely a. decrease some other asset. b. increase a current liability. c. increase a noncurrent liability. d. increase shareholders' equity. e. decrease shareholders' equity.