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
Answer:
False
Explanation:
A defined benefit pension plan is a type of pension plan where the employer gives a promise with respect to the particular pension payment that could be lumpsum for the retirement basis
Since in the question it is mentioned that the companies would not continue with the defined benefit plan and they move to the defined-contribution plans that save for the retirement so that it would create the more responsibility over the company due to this they would provide the retirement benefit but this statement is false as it is better to received the lumpsum amount
Answer: B
Explanation: Engines for the cars is a cost directly related to the Ford cars being produced. The property taxes and the janitors rates are indirect costs because they are general costs needed to run the business but are not directly linked to the production of the ford cars
Entrepreneurs are people that make their own business. Most businesses tend to have a rough start and can possibly even fail. It depends on how the person creating the business acts and how determined they are to make the business flourish. Although many rich people may of started off of just one product that got advertised well and was sold quickly. Even if it isn't a product but more so a service, you can be very successful. Just know what the people want.
Hope this helped!
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