Private-sector health care organizations use the three-category FASB format for the Statement of Cash flows, while public sector organizations use the four-category GASB format.
Answer the following statement true (T) or false (F)
True
Private-sector health care organizations use the three-category (operating, investing and financing) FASB format for the Statement of Cash flows, while public sector organizations use the four-category (operating, noncapital financing, capital and related financing, and investing) GASB format.
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Money serves as a status symbol in which of the following examples?
A. The CEO has a salary of over $3 million. B. The clerk is paid minimum wage plus tips. C. The owner of the business keeps profits but has no salary. D. The manufacturing worker is paid for each item he produces.
Which form of pay does NOT permanently increase labor costs?
A. Base pay B. Merit pay C. Incentives D. Cost-of-living adjustments
The normal balance of a contra asset account is a debit.
Answer the following statement true (T) or false (F)
Phoenix Agency leases office space for $7,000 per month. On January 3, Phoenix incurs $65,000 to improve the leased office space. These improvements are expected to yield benefits for 8 years. Phoenix has 5 years remaining on its lease. Compute the amount of expense that should be recorded the first year related to the improvements.
A) $20,000. B) $6,000. C) $13,000. D) $65,000. E) $8,125.