Which of the following statements is false?
a. Cash equivalents are included in cash on the balance sheet and on the statement of cash flows.
b. Investments in cash equivalents and investments in stock have the same economic effect--assets increase and decrease by the same amount.
c. An investment is a cash equivalent if it is convertible into a known amount of cash and has an original maturity of 3 months or less when purchased.
d. Investments in stock are reported as a financing activity on the statement of cash flows.
d
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Which of the following describes the classification and normal balance of the fees earned account?
A) asset, credit B) liability, credit C) owner's equity, debit D) revenue, credit
The Securities Investor Protection Act of 1970 gives the Securities and Exchange Commission authority to regulate the finances of public investment companies that invest in and trade in securities
Indicate whether the statement is true or false
The ________ is the law code promulgated in 1896 that is based primarily on the Corpus Juris Civilis and is characterized by its detailed structure and its technical precision
A. comparative law B. German Civil Code C. French Civil Code D. common law
Bridge Company makes special equipment used in cell towers
Each unit sells for $410. Bridge uses just-in-time inventory procedures; it produces and sells 12,000 units per year. It has provided the following income statement data: Traditional Format Contribution Margin Format Sales revenue $4,920,000 Sales revenue $4,920,000 Cost of goods sold 2,900,000 Variable costs: Gross profit 2,020,000 Manufacturing 1,000,000 Selling & admin. expenses 650,000 Selling & admin. 400,000 Contribution margin 3,520,000 Fixed costs: Manufacturing 1,900,000 Selling & admin. 250,000 Operating income $1,370,000 Operating income $1,370,000 A foreign company has offered to buy 100 units for a reduced sales price of $300 per unit. The marketing manager says the sale will have no negative impact the company's regular sales. The sales manager says that this sale will not require any additional selling and administrative costs, as it is a one-time deal. The production manager reports that there is plenty of excess capacity to accommodate the deal without requiring any additional fixed costs. If Bridge accepts the deal, how will this impact operating income? (Round any intermediate calculations to the nearest cent, and your final answer to the nearest dollar.) A) Operating income will increase by $29,917. B) Operating income will decrease by $29,917. C) Operating income will increase by $30,000. D) Operating income will decrease by $30,000.