Capital budgeting investments are based on the assumption that rates of return on investments
will vary, but current inflation rates will remain the same during the useful life of the
investment.
Indicate whether the statement is true or false
FALSE
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The account which records the difference between the cash needed for replenishment and amount of receipts is called:
A) Petty Cash. B) Cash Over and Short. C) Cash Equivalents. D) Discrepancy Expense.
Marion Manufacturing had the following cash flows for the current year. The company uses the direct method in preparing the statement of cash flows. Cash receipts from issuance of stock$60,000 Bonds payable issued at face value 250,000 Cash dividends received from long-term investments 4,500 Cash paid for wages 20,000 Cash paid for dividends 5,000 Cash received from customers 42,500 Cash paid for other operating expenses 19,500 Cash paid to purchase equipment 100,000 What is the net cash flows provided by (used in) financing activities?
A. $205,000 B. $245,000 C. $305,000 D. $310,000
Which of the following statements concerning the collision damage waiver when renting an auto is true?
I. It relieves the renter from legal liability to third parties arising out of operation of the rented car. II. It relieves the renter from legal liability for the vehicle if it is damaged or stolen. A) I only B) II only C) both I and II D) neither I nor II
JEMS Enterprise buys wooden furniture, such as tables and chairs, from a furniture manufacturer and sells them to government schools. In this scenario, JEMS Enterprise is a _____.
A. broker B. producer C. wholesaler D. retailer