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

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

Transactions are recorded first in the ledger and then transferred to the journal.

A decrease in the inventory account during the year should be reported on the indirect method statement of cash flows as:

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

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

A cash dividend payment to shareholders during the year should be reported on the statement of cash flows as:

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 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.