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mrs_skeptik [129]
3 years ago
11

Which one of the following statements is not true about statements of cash flows prepared according to U.S. GAAP?a. The operatin

g section of the indirect method starts with the net income of the periodb. In the indirect method statement, the period's depreciation is added to net income because it is a source of cashc. Interest payments are included in the operating section of the direct method statementd. The investing section of the direct method statement for a period is identical to the investing section of the indirect method statement for the same period
Business
1 answer:
Nutka1998 [239]3 years ago
4 0

Answer:

The correct answer is b. In the indirect method statement, the period's depreciation is added to net income because it is a source of cash

Explanation:

Indirect method make adjustment to reconcile the net income to cash. It depends on the account if it is added or subtracted to net income.

We are going to analyze the options

a. The operating section of the indirect method starts with the net income of the period TRUE

b. In the indirect method statement, the period's depreciation is added to net income because it is a source of cash

FALSE,  depreciation is not a source of cash

c. Interest payments are included in the operating section of the direct method statement

TRUE

d. The investing section of the direct method statement for a period is identical to the investing section of the indirect method statement for the same period TRUE

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What type of market entry strategy do you recommend for Burger Time?
morpeh [17]

Answer: Franchise

Explanation:

Franchise could be defined as when new or intending growing businesses use the name of bigger or renowned business names, brands to run their own business. This helps for popularity sake, and making the goods of the smaller business to be marketable through the awareness that has been built in the trust that people have known the big firm for. Most new firms looking to break a competitive market aim at doing this.

6 0
3 years ago
Suppose the economy is in a recession. The economy needs to expand by at least $350 billion, and the marginal propensity to cons
MissTica

Answer:

$140

Explanation:

Calculation for What is the least amount the government can spend to overcome the $350 billion gap

First step is to find the Multiplier using this formula

Multiplier=1(1-Marginal propensity)

Let plug in the formula

Multiplier=1/(1-0.6)

Multiplier=1/0.4

Multiplier=2.5

Now let calculate the least amount the government can spend using this formula

Least amount=Gap/Multiplier

Let plug in the formula

Least amount=$350 billion /2.5

Least amount=$140

Therefore the least amount the government can spend to overcome the $350 billion gap is $140

4 0
3 years ago
Karen and Mike currently insure their cars with separate companies, paying $400 and $600 a year. If they insured both cars with
Papessa [141]

Answer:

$1,720

Explanation:

Total annual premium for both Karen and Mike = $400 + $600 = $1,000

If they insured both cars with the same company, they would save 15% on the annual premiums -> the annual saving = 15% * $1,000 = $150

We use formula FV to calculate the future value of annual payment:

= FV(rate, number of payment, - payment) = FV(3%,10,-150) = $1,720

4 0
3 years ago
Debra notes that Theo Chocolate has started holding its own operations to the same IMO standards of fair trade to which it holds
slamgirl [31]

Answer:

The correct answer is letter "A": Ethical leadership.

Explanation:

Ethical leadership is the set of managerial practices that executives use to give an example to their subordinates and promote good values among the organization. This is typically achieved by promoting fair treatment among workers and social awareness with the external environment of the firm.

In the example, <em>Theo Chocolate started to follow the International Maritime Organization (IMO) standards that promote the safety and security of international shipping and forbid marine pollution from ships</em>.

8 0
3 years ago
Castle State Bank has the following financial information.
Setler79 [48]

Answer:

Castle State Bank's equity multiplier is 2.2

Explanation:

Total Assets = $2,200

Total Liabilities and Equity = $2200

Net Loans = $1,200

Total Equity = $2,200 - $1,200 = $1,000

Equity multiplier = Total Assets / Total Shareholders Equity

Equity multiplier = 2,200 / $1,000

Equity multiplier = 2.2

Total Assets is equal to Total equity and Liabilities. Total equity and Liabilities includes the balance of Both equity and liabilities. Total equity is calculated by subtracting Total Loans from Total equity and Liabilities.

4 0
3 years ago
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