Which of the following statements regarding discontinued operations is true?
a. The assets and liabilities of a disposal group classified as held for sale by an entity may be offset and shown as a single item on the balance sheet of the entity.
b. The assets and liabilities of a disposal group of an entity must be shown separately in the asset and liabilities sections of the balance sheet of the entity and cannot be offset.
c. An adjustment in a subsequent period to the selling price of a component of an entity sold must be reported as a retroactive adjustment in the prior-period financial statements of the entity in which the discontinued operation was reported.
d. The gain or loss on disposal of a component of an entity classified as a discontinued operation need not be disclosed separately from the loss from operations of the discontinued segment.
B
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Northeast Inc. is preparing the company's statement of cash flows for the fiscal year just ended. Using the following information, determine the amount of cash flows from investing activities: Net income$182,000Gain on the sale of equipment 12,300Proceeds from the sale of equipment 92,300Depreciation expense-equipment 50,000Payment of bonds at maturity 100,000Purchase of land 200,000Issuance of common stock 300,000Increase in merchandise inventory 35,400Decrease in accounts receivable 28,800Increase in accounts payable 23,700Payment of cash dividends 32,000
A. ($139,700). B. ($200,000). C. ($107,700). D. ($207,700). E. $107,700.
LeGo Financials offer two investment plans. Investment A pays 9 percent interest compounded monthly, whereas Investment B pays 10 percent interest compounded semiannually. What are the effective annual rates of the two investments??
A. ?9.38%; 10.50% B. ?9.38%; 10.25% C. ?9.75%; 10.25% D. ?9.75%; 10.50% E. ?9.94%; 10.45%
Every sale or lease by a merchant who deals in goods of the kind sold or leased automatically gives rise to an implied warranty of merchantability.
Answer the following statement true (T) or false (F)
The choice of the most appropriate form of business enterprise cannot be determined without considering the particular circumstances of the owners
Indicate whether the statement is true or false