Depreciation expense will appear on the schedule of cash payments for selling and administrative expenses.
Answer the following statement true (T) or false (F)
False
Depreciation expense does not affect the cash payments schedule. The cash outflow for the related fixed assets occurs when the assets are purchased, not when they are depreciated.
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The rules by which employers must deposit Social Security and Medicare taxes can be found in
a. the Employer's Tax Guide; b. the IRS Tax Guide; c. The Federal Reserve Bank Tax Guide; d. the employer's handbook; e. none of these
The Extra Surplus Company's Balance Sheet for December 31, 2017 and the Income Statement for 2018 are shown below.Extra Surplus Company Balance Sheet December 31, 2017 Assets Cash$10,000 Accounts Receivable 5,000 Inventory 12,000 Property and Equipment, Net 20,000 $47,000 Liabilities and Stockholders' Equity Accounts Payable$10,000 Notes Payable, Long-Term 5,000 Common Stock 20,000 Retained Earnings 12,000 $47,000 Extra Surplus CompanyIncome StatementFor the Year Ended December 31, 2018Sales$13,000 Cost of Goods Sold 3,000 Salaries and Wage Expense 3,000 Interest Expense 1,000 Other Expenses 500 Net Income$5,500 Additional data:• Sales were $13,000; $8,000 in cash was received from
customers.• Bought new land for cash, $10,000.• Sold other land for its book value of $5,000.• Paid $1,000 principal on the long-term note payable and $1,000 in interest.• Issued new shares of stock for $10,000 cash.• Cash dividends of $1,000 were declared and paid to stockholders.• Paid $5,500 on accounts payable.• No inventory purchases were made; other expenses were incurred on account.• All wages were paid in cash.• Other expenses were on account.Required:Part a. Prepare a balance sheet at December 31, 2018.Part b. Prepare the statement of cash flows using the direct method. What will be an ideal response?
Which of the following messages uses a sanction strategy?
A. "Donate now." B. "Please donate now." C. "These orphans need your help. Donate now." D. "We are desperate for assistance. Please help us."
A trustee has the power to avoid preferences.?
Indicate whether the statement is true or false