Quiz – Management Discussion & Analysis
Intermediate Accounting
Spiceland, Nelson, and Thomas
10th Edition
The Management’s Discussion and Analysis section of the annual report (required by the SEC) can be described as:
The Management’s Discussion and Analysis section of the annual report (required by the SEC) can be described as:
Which of the following factors would explain why Michigan Energy’s cash increased if it had a negative cash flow last year?a. The company sold a new issue of bonds.b. The firm heavily invested in plant and equipment.c. The firm paid an enormous dividend.d. The firm incurred high depreciation charges.e. The company repurchased 20% of its…
New Oaks Winery Company requires two months to produce the wine, and two total years to age it in barrels, then one month to bottle it, and two months to sell it, and then one month to collect the receivable. Its operating cycle is:
Notes payable due in two years are:
How would a company classify a six-month prepaid insurance policy:
Suppose a company mistakenly records cash received for future services with a debit to Cash and a credit to Service Revenue, how will this affect net income?
Determine whether the following is true or false: Suppose that tax laws were changed such that $0.50 out of every $1.00 of interest paid by a company was allowed to be tax-deductible, then this would enourage corporations to use more debt financing than they currently do. Experts Have Solved This Problem Please login or register…
70% of the interest income received by corporations is excluded from taxable income, firms are encouraged to finance themselves with more debt than they would otherwise, in the absence of this tax law.
An increase in accounts payable shows an increase in net cash from operating activities just like borrowing. An increase in accounts payable has an effect similar to taking about a loan from the bank. However, these two items show up in different places of the statement of cash flows to reflect the difference between operating…
An increase in accounts receivable is an increase in cash from operating activities because receivables will generate cash flow when they are collected.