Answer:
False (B)
Explanation:
Long-term borrowing & repaying cash from lenders
Long-term borrowing will be classified under financing activities as it represents capital sourced from loan investors (e.g Bondholders,Banks e.t.c). As for repaying cash from lenders, capital repayment will be classified under financing activities while interest is recognized either under operating or financing activity.
Cash investments by or dividends paid to stockholders.
Cash investment by stockholders will be categorized under financing activities while dividend paid can either be categorized as operating or financing activity.
Answer: Option (A) is correct.
Explanation:
Correct option: Earn positive profits in the long run.
All the industries that operates in a monopoly, oligopoly and monopolistic market conditions are generally having positive profits in the long run.
These industries can earn positive profits because there are high restrictions on the entry of the new firms. This is the case of monopoly and oligopoly. But in monopolistic competition, there are many firms in the market and the firms in this market condition can have a positive profits in the long run. There are comparatively less barriers on the entry of the new firms.
Answer:
net income $72,000
Explanation:
The computation of the amount that should be reported is shown below:
Revenue $600,000
less:
operating expense -$420,000
restructing costs -$100,000
interest expense -$20,000
Add: gain on sale of investments $30,000
EBIT $90,000
less income tax at 20% - $18,000
net income $72,000
The bank must notify U.S. Treasury Department.
Hope this helps!!
