When no value is in the base period, no percent change is computable.

If a company receives $12,000 from its sole stockholder to establish a corporation, the effect on the accounting equation would be:

The reporting of investing activities in the statement of cash flows is identical under either the direct or indirect methods.

Net sales divided by Average accounts receivable, net is the:

Assuming unearned revenues are originally recorded in balance sheet accounts, the adjusting entry to record earning of unearned revenue is:

Financing activities include receiving cash dividends from investments in other companies’ stocks.

When a negative amount is in the base period and a positive amount is in the analysis period (or vice versa), a meaningful percent change cannot be calculated.

Equipment costing $200,000 with accumulated depreciation of $160,000 is sold at a loss of $10,000. This implies that $30,000 cash was received from the sale.

Accumulated depreciation is shown on the balance sheet as a subtraction from the cost of its related asset.

When preparing the operating activities section of the statement of cash flows using the indirect method, a decrease in accounts receivable is subtracted from net income.