Duty-free shopping is an important component to airport retailing where global flights exits

Indicate whether the statement is true or false


True

Business

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All of the following statements are true except:

a. International accounting standards are more flexible in allowing the use of fair market values for intangible assets. b. FASB standards require all research and development costs to be expensed. c. IFRS requires all research and development costs to be expensed. d. Under IFRS, fair market values for intangibles require an active market.

Business

Pacific Green Company is considering buying a unique bar-coding machine to help them track their plant inventory. They are using the payback period and accounting rate of return methods to evaluate the purchase. They will consider the project further if the payback period is less than four years and it has a minimum accounting rate of return of 7%. Relevant information on the machine is as follows:Acquisition cost = $48,000Expected salvage value = $0Expected annual cash inflow benefits = $13,000 per year for 5 yearsExpected useful life = 5 yearsRequired: Compute the payback period and ARR. Advise GPC on their appropriate action.

What will be an ideal response?

Business

Financially healthy firms frequently close any cash flow gaps in their operating cycles with ________________________________________

Fill in the blank(s) with correct word

Business

The data given below are from the accounting records of Kain Company: Net Income $40,000 Depreciation expense 8,000 Decrease in accounts payable 1,800 Decrease in merchandise inventory 2,500 Increase in long-term liabilities 10,000 Increase in common stock 25,000 Increase in accounts receivable 4,000 Based on this information, the net cash flows from operating activities on the statement of cash

flows using the indirect method would be: A) $51,300. B) $50,000. C) $42,100. D) $44,700.

Business