题目内容

What is the difference between the direct and the indirect method of calculating cash flow from operations

A. The indirect method starts with gross income and adjusts to cash flow from operations, while the direct method starts with gross profit and flows through the income statement to calculate cash flows from operations.
B. The direct method starts with sales and follows cash as it flows through the income statement, while the indirect method starts with net income and adjusts for non-cash charges and other items.
C. Balance sheet items are not included in the cash flow from operations for the direct method, while they are included for the indirect method.

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What is the impact on accounts receivable if sales exceed cash collections and what is the impact on accounts payable if cash paid to suppliers exceeds purchases Accounts receivable Accounts payable ①A. Increase Decrease ②B. Increase Increase ③C. Decrease Decrease

A. ①
B. ②
C. ③

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Which of the following statements about dilutive securities is least likely correct

A simple capital structure is one that contains only common stock and antidilutive securities.
B. A complex capital structure is one that contains potentially dilutive securities.
C. A dilutive security is one that will cause earnings per share (EPS) to decrease if it is converted into common stock.

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On January 1,2007, Omega Corporation paid $45000 to renew its property insurance for 3 years. What amount of insurance expense should Omega report for the year-ended December 31, 20×7 and what is the balance of Omega’ s prepaid insurance account on December 31,20×8 Insurance expense Prepaid insurance ①A. $15000 $ 30000 ②B. $15000 $15000 ③C. $ 45000 $15000

A. ①
B. ②
C. ③

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