What is the major advantage of using the direct method of preparing the operating activities section of the statement of cash flows?
What will be an ideal response?
The direct method shows the specific sources and uses of cash that are associated with operating activities. Because people typically find the direct method easier to understand, the Financial Accounting Standards Board (FASB) recommends it.
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Lou Hinton's savings account (offering 12% simple interest) showed the following activity for the month of June:
Opening balance $2,000 6/10 Deposit 1,000 6/20 Withdrawal ( 800) 6/30 Ending Balance 2,200 Interest earned in June with the minimum balance method would be A) $20.00. B) $22.00. C) $30.00. D) unknown.
Which of the following best describes the trend in social responsibility models used by companies?
A. Most companies are changing from a socioeconomic approach to an economic approach to social responsibility. B. There has really been no pattern of change over the last century because most companies take a socioeconomic approach. C. There has been a sporadic shift back and forth between the economic and socioeconomic model as the best business solution. D. Relatively little transformation has left the economic model as the philosophy for most businesses. E. More companies have been bypassing the economic model in favor of the socioeconomic model in recent years.
The seven elements of the marketing mix for services are product, promotion, place, price, process, progress, and people.
Answer the following statement true (T) or false (F)
Compare the ethical blind spots of individualism to those of collectivism.
What will be an ideal response?