Which of the Following Statements Is CORRECT

question 61

Multiple Choice

Which of the following statements is CORRECT?

• A) Since depreciation increases the firm's net cash provided by operating activities,the more depreciation a company has,the larger its retained earnings will be,other things held constant.
• B) A firm can show a large amount of retained earnings on its balance sheet yet need to borrow cash to make required payments.
• C) Common equity includes common stock and retained earnings,less accumulated depreciation.
• D) The retained earnings account as reported on the balance sheet shows the amount of cash that is available for paying dividends.
• E) If a firm reports a loss on its income statement,then the retained earnings account as shown on the balance sheet will be negative.

Understand the purpose and critical nature of the needs analysis process in training and development.

Identify and differentiate the steps involved in the needs analysis process.

Recognize the importance of compliance training and how it differs from job performance training.

Understand the significance of aligning training plans with business strategy and stakeholder involvement.

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Definitions:

Allowance Method

An accounting technique used to estimate and deduct bad debts from accounts receivable.

Accounts Receivable

Amounts owed to a business by its customers for goods or services delivered but not yet paid for.

Bankrupt

A legal status of a person or entity that cannot repay the debts it owes to creditors.

Allowance for Doubtful Accounts

A contra-asset account that represents the amount of accounts receivable that is expected to be uncollectible.