The following are indicators in the terms of a lease that cause it to be treated as a capital lease. (1 ) Losses due to cancellation of the lease by the lessee are borne by the lessee. (2 ) Gains and losses due to changes in the fair value of the leased asset are captured by the lessee. These indicators are criteria that trigger lease capitalization under GAAP IFRS I. Yes Yes II. Yes No III. No
Yes IV. No No ?
A) I
B) II
C) III
D) IV
C
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The objective of the indirect method is to reconcile net income to net cash flow from _______________________________
Fill in the blank(s) with correct word
Which of the following is the correct description of dividends in arrears?
A) the cumulative amount of dividends that were not paid in previous years B) the cumulative amount of dividends that were paid in previous years C) the amount of dividends that were paid after the payment date D) the amount of dividends that will be paid in the next year
Mayfield Corporation has provided the following financial data:Assets Current assets: Cash$223,000 Accounts receivable, net 236,000 Inventory 202,000 Prepaid expenses 10,000 Total current assets 671,000 Plant and equipment, net 665,000 Total assets$1,336,000 Liabilities and Stockholders' Equity Current liabilities: Accounts payable$156,000 Accrued liabilities 52,000 Notes payable, short term 45,000 Total current liabilities 253,000 Bonds payable 100,000 Total liabilities 353,000 Stockholders' equity: Common stock, $4 par value 360,000 Additional paid-in capital 80,000 Retained earnings 543,000 Total stockholders' equity 983,000 Total liabilities & stockholders' equity$1,336,000 The company's current ratio is closest to:
A. 0.50 B. 0.26 C. 2.65 D. 0.53
In the event of a breach of sales contract by the seller, all reasonable costs or direct expenses associated with the delay in receiving the goods or in tracking down substitute goods are included in the:
a. incidental damages b. exemplary damages c. consequential damages d. inconsequential damages e. total damages