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tiny-mole [99]
3 years ago
7

The major difference between the indirect and the direct method of a statement of cash flows appears in which the following acti

vities section(s)?
A. The investing activities and financing activities sections.
B. The investing activities section only.
C. The operating activities and financing activities sections.
D. The operating activities section only.
Business
1 answer:
Ulleksa [173]3 years ago
7 0

Answer: Option D

                                             

Explanation: In simple words, operating activities refers to the  activities that are related to the core operation of the business.

While preparing cash flow statement from the method, the accountant records the inflow and outflow of the activities directly, however, in case of applying the indirect method the accountant takes the accrual basis to cash basis accounting transactions into consideration.

While preparing cash flow statement other two sections are prepared in a same way in which all the inflows and outflows are recorded directly.

   Thus, from the above we can conclude that the correct option is D.

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Joseph will start school on 9/1/14. He is expected to attend school for four years and will need to pay tuition of $50,000 on Se
My name is Ann [436]

Answer:

e. $153,156

Explanation:

From 9/1/14, he needs $50,000 every year for 4 years to fund the tuition fees. Therefore, present value of the amount needed at 9/1/14 using the Present value of annuity due formula

= 50,000 * {1+ (1/(1.05)^4) } / 0.05 * (1.05)

= $186,162

$186,162 is the amount needed after 4 years. Amount you need to invest today to have this amount in four years = $186,162/(1.05)^4 = $186,162/1.21550625 = $153,156.40

6 0
3 years ago
Natalie operates on a pretty tight budget. She is a price-conscious shopper and usually buys store or generic brands to save mon
Llana [10]

Answer: The income effect

Explanation: The income effect refers to the effect on the purchasing power of the consumer when his or her income level changes.

In the given case, Natalie was price conscious  and used to buy lower priced goods with the objective of saving money. When her income rises she starts buying expensive goods as her purchasing power increases with increase in income.

Hence from the above we can conclude that the correct option is A.

7 0
3 years ago
For each of the following examples, explain whether it is a case of external or internal economies of scale:
777dan777 [17]

Whether it is a case of external or internal economies of scale:

A. A number of firms doing contract research for the drug industry are concentrated

Larger changes within the industry lead to external economies of scale, so as the industry expands, the average cost of doing business decreases.

when external economies of scale exist?

External economies of scale take place when an industry as a whole expands and businesses profit from lower long-term average costs. External economies of scale are also known as advantageous external outcomes of industrial development.

An external economy of scale is shared by competitors, internal economies of scale provide larger competitive advantages.

To learn more about external economies refer to:

brainly.com/question/20354469

#SPJ9

8 0
1 year ago
Obama Company sells its product for $25 per unit. During 2012, it produced 20,000 units and sold 15,000 units (there was no begi
horrorfan [7]

Answer:

Unitary cost= $12

Explanation:

Giving the following information:

direct materials $5

direct labor $4

variable overhead $3

The variable costing method incorporates all variable production costs (direct material, direct labor, and variable overhead) to calculate the product unitary cost.

Unitary cost= 5 + 4 + 3= $12

3 0
3 years ago
After making a sale, a seller may have customers that return goods. The seller uses the perpetual inventory system. This require
anyanavicka [17]

Answer:

D. All of the statements are correct.

Explanation:

The Seller requires to

Reduce its sales by the estimated return value and cost of goods sold by the estimated cost value of the units expected to return in the future.

Use historical data of sales and returns and calculate the value of expected return items.

After the estimation of values record the adjusting transaction for the estimated return liability and the inventory to be returna as well.

7 0
2 years ago
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