The Comparative Balance Sheets of Midnite Corp

question 157

Multiple Choice

The comparative balance sheets of Midnite Corp.for 2017 and 2016 indicate that short-term trade notes receivable increased from $5,000 in 2016 to $75,000 in 2017.How will this change be reported on Midnite's statement of cash flows, if Midnite uses the indirect method?

• A) It will be included in the amount of cash and cash equivalents at the end of 2017.
• B) It will be reported as a deduction from net income in the operating activities section.
• C) It will be reported as a cash outflow in the investing activities section.
• D) It will be added to net income in the operating activities section.

Understand the concepts of title passage and risk of loss under UCC.

Recognize the rights of buyers and sellers in the transfer of title.

Distinguish between shipment and destination contracts.

Identify the implications of entrusting goods to a merchant.

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Definitions:

Control Group

A group in a study or experiment that does not receive the experimental treatment and is used as a benchmark to gauge the effects of the intervention.

Sunscreens

Products that protect the skin from the harmful effects of ultraviolet radiation by absorbing, reflecting, or scattering sunlight.

Randomization

The process of randomly assigning study participants to different treatment or control groups to reduce biased outcomes in research.

Bias

A systematic error in the collection, analysis, interpretation, or review of data that can lead to conclusions that are systematically different from the truth.