2006 using double-declining-balance would be a. $2‚000. b. $3‚000. c. $6‚000. d. $12‚000. 7. Assume that Z Company uses straight-line depreciation. If on January 1‚ 2007‚ Z Company sells the asset for $10‚000‚ the statement of cash flows would report a a. $1‚000 cash inflow from gain on the
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CHAPTER 23 STATEMENT OF CASH FLOWS IFRS questions are available at the end of this chapter. TRUE-FALSe—Conceptual Answer No. Description F 1. Primary purpose of the statement of cash flows. T 2. Information provided by statement of cash flows. T 3. Classification of operating activities. F 4. First step in cash flow statement preparation. T 5. Reconciling beginning and ending cash balances. F 6. FASB’s recommended method. T 7. Decrease in accounts receivable and cash-basis revenues. F
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affiliated corporations 700‚000 Dividends paid to preferred stockholders 200‚000 Proceeds from issuing preferred stock 800‚000 Proceeds from sale of equipment 100‚000 1. The net cash provided (used) by investing activities during 2013 is a. $100‚000. b. $(600‚000). c. $(1‚100‚000). d. $(2‚500‚000). e. None of the above. 2. The net cash provided by financing activities during 2013 is a. $1‚100‚000. b. $1‚300‚000. c. $1‚600‚000. d. $1‚800‚000. e. None of the above. 3. Which of the following should be disclosed
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redemption [240000*0.2] 48‚000 Bank [240000*1.2] 288‚000 Share Premium 48‚000 Premium on redemption 48‚000 Retained Earnings 240‚000 Capital redemption reserve 240‚000 Q2. Gembira Bhd Statement of Comprehensive Income for the year ended 30 September 2010 RM’000 RM’000 Revenue 5‚200 Ccost of sales (W1) (3‚248) Gross profit 1‚952 Selling and distribution expenses (W1) (489) Administrative expenses (W1) (1‚174
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Principles b. The financial history of the entity c. Ensuring that all transactions are properly recoded d. Providing information to managers for use within the organization 4. The plans of management are often expressed formally in a. financial statements b. performance reports c. budgets d. ledgers 5. Which of the following is NOT one of the Institute of Management Accountants’ Standards of Ethical Conduct? a. Competence b. Confidentiality c. Independence d. Integrity 6. Which of the
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reported in a separate schedule‚ and (2) represents a cash inflow or cash outflow or has no cash flow effect. Assume use of the indirect approach. Transaction Where Reported Cash Inflow‚ Outflow‚ or No Effect? Depreciation expense on the plant assets Noncash (NC) Inflow Paid interest expense. Investing (I) Outflow Cash from a sale of plant assets. Investing (I) Inflow Acquired land by issuing common stock. Noncash (NC) No Effect Paid a cash dividend Financing (F) Inflow Distributed
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Should the leased building be accounted for as an asset? Leased building should be recognized as assets‚ because is performed for business use for a longer period than one year. At the time of acquisition of lease rights‚ building should be booked on account named Property‚ Plants & Equipment ( PP&E ) as shown Figure 1. |Assets | | | | |Property‚ plants & equipment | |Dt
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two separate transactions in the fiscal year 2010‚ which must be appropriately classified on the statement of cash flows. Each transaction can be recorded as an operating‚ investing‚ or financing activity on the statement of cash flows. Financing activities consist of obtaining cash from issuing debt and repaying the amounts borrowed. This also includes equity transactions‚ such as obtaining cash from stockholders‚ the purchase of treasury stock‚ and paying shareholders. Investing activities
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Update STAFF DRAFT Financial Statement Presentation ST A FF D R A FT — SU B JE C July 1‚ 2010 T TO C H A N of an Exposure Draft on G E Notice to Recipients of this Staff Draft of an Exposure Draft on Financial Statement Presentation This staff draft of an Exposure Draft has been prepared by the staff of the FASB and the IASB (Boards) for the Boards’ joint project to develop a standard on financial statement presentation. The draft reflects
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Financial Statements Dr. M. Nusrate Aziz Senior Lecturer and DBA Coordinator Graduate School of Management Multimedia University E-mail: md.nusrate@mmu.edu.my Accounting Profit Vs. Cash Flow • The Midland Company refines and trades gold. It purchased gold at the beginning of the year and paid $900‚000. End of the year the company sold it for $1 million. However‚ money has yet to collect from customer. Accounting View Income Statement‚ December 31 Sales - Costs $1‚000‚000 - $900‚000 Financial
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