An increase in accounts payable represents an increase in net cash provided by operating activities, an effect similar to taking out a new bank loan. However, these two items show up in different sections of the statement of cash flows to reflect the difference between operating and financing activities.
Answer the following statement true (T) or false (F)
True
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Which of the following is best described as a market-oriented business definition?
A) Missouri-Pacific Railroad: We run a railroad. B) Xerox: We make copying equipment. C) Standard Oil: We sell gasoline. D) Encyclopedia Britannica: We distribute information. E) Columbia Pictures: We make movies.
A limitation of the internal rate of return method is that it:
A. Does not consider the time value of money. B. Lacks ability to compare dissimilar projects. C. Measures results in years. D. Ignores varying risks over the life of a project. E. Measures net income rather than cash flows.
The following information (in 000s) is available for Trans Machine Tool Corporation for a specific period: Direct material $600 Direct labor 450 Factory overhead 400 What is the conversion cost for the company?
a. $1,000 b. $1,350 c. $950 d. $ 850
An advantage of a retailer-generated credit card is _____
a. no bad debt or slow-payment problems b. no need for credit checks c. low startup costs d. the encouragement of store loyalty