In the year a city enters into a capital lease to finance a new sanitation truck, the General Fund will report
A. An increase in capital assets.
B. A decrease in fund balance equal to the cost of the new sanitation truck.
C. An other financing use.
D. A decrease in fund balance equal to the amount of any down payment required.
D
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A P/E ratio measures how much investors are willing to pay for
A) $1 of the company's revenue. B) the price of the stock. C) $1 of the company's earnings. D) the sales of the company.
With reference to the reporting of net cash flow from operating activities, which method do most companies use and why?
A. Indirect method because it is less expensive to prepare B. Direct method because it is based on the accrual basis of accounting C. Direct method because it requires a supplemental indirect method section D. Indirect method because it provides better information for decision making