Under the gross method, purchase and sales discounts are recorded:
A. when the cash is paid or received.
B. as an increase to the purchase or sales price.
C. as an increase to Cost of Goods Sold or to Inventory.
D. at the time of initial purchase or sale.
Answer: A
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In determining cash flows from operations under the indirect method, the adjustments to convert net income to cash flow from operations generally involve _____ the amount by which an expense exceeds the related cash expenditure for the period (for depreciation, the entire amount)
a. subtracting b. multiplying c. adding d. dividing e. cannot be determined from the information provided
Res judicata applies only to final decisions on the merits
a. True b. False
Zelda signs a promissory note for $2,500 to First Bank. At the request of both Zelda and the bank, Ann also signs the note as an accommodation maker. In this situation:
a. Zelda is primarily liable on the note. b. Ann is primarily liable on the note. c. Ann has secondary liability on the note d. Zelda and Ann are both primarily liable on the note. e. Zelda is primarily liable and Ann has secondary liability on the note
Caterpillar collects and analyses large volumes of data about how customers use their tractors. This permits them to ________ the cost of new product development efforts and to better ________ their products.
A. increase; differentiate B. identify; disperse C. reduce; differentiate D. position; understand