Statement of Cash Flows Preview of Chapter Usefulness and Format Usefulness of the Statement of Cash Flows Provides information to help assess: 1. Entity’s ability to generate future cash flows. 2. Entity’s ability to pay dividends and obligations. 3. Reasons for difference between net income and net cash provided (used) by operating activities. 4. Cash investing and financing transactions during the period. SO 1 Indicate the usefulness of the statement of cash flows. Usefulness
Premium Balance sheet Generally Accepted Accounting Principles Cash flow statement
Testbank to accompany Applying International Financial Reporting Standards 3e By Prepared by John Sweeting and Emma Holmes John Wiley & Sons Australia‚ Ltd 2013 Chapter 25 Consolidation: intragroup transactions Learning Objectives Learning Objective 25.1 Explain the need for making adjustments for intragroup transactions Learning Objective 25.2 Prepare worksheet entries for intragroup transactions involving profits and losses in beginning and ending inventory Learning Objective
Premium Generally Accepted Accounting Principles Revenue Depreciation
Depreciation is an expense that indicates the decrease in value of a fixed asset over a period of time. The cost price minus the asset’s depreciation calculates the carrying value of the asset. Depreciation is accounted for in order to know the carrying value of a vehicle and to help when determining the price at which the business should sell the vehicle. 2. F 3. Besides model‚ describe FOUR other factors that influence the price of a second hand car. - The price may be determined by the kilometers
Premium Generally Accepted Accounting Principles Balance sheet Asset
could make a more specific estimate for uncollectable accounts. Problem 3 Example A Example B Original cost 4‚500‚000 Original cost 4‚500‚000 Useful life 10 Useful life 6 Residual Value 500‚000 Residual Value 500‚000 Depreciation per Year: 400‚000 Depreciation per Year: 666‚666.67 Year of Disposal 5 Year of Disposal 5 Problem 4 & 5 Company A Tropical Wave Corporation Partial Income Statement For the Year Ended December 31 Sales: Water Sports Equipment $4‚500‚000 Lotion
Premium Generally Accepted Accounting Principles Balance sheet Depreciation
E16-1 2008 Expense and liability for vacations: Salaries and Wages Expense 7200 Salaries and Wages Payable 7200 Expense and liability for sick days: Salaries and Wages Expense 4320 Salaries and Wages Payable 4320 Record sick leave taken by employees: Salaries and Wages Payable 2880 Cash 2880 2009 Expense and liability for vacations: Salaries and Wages Expense 7920 Salaries and Wages Payable 7920 Expense and liability for sick days:
Premium Depreciation Lease Leasing
ACC 422 Final Exam Copy this link to your browser and download http://www.finalexamguide.com/ACC-422-Final-Exam-3-WileyPlus-263.htm Question 2 Presented below is information related to Rembrandt Inc. ’s inventory. (per unit) Skis Boots Parkas Historical Cost 273.79 152.75 76.37 Selling Price 312.70 208.95 106.27 Cost to distribute 27.38 11.53 3.60 Current replacement cost 292.52 151.31 73.49 Normal profit margin 46.11 41.79 30.62 Determine the following:
Premium Depreciation Inventory
Eagle Impairment Case Question 1 IFRS According to the facts provided for Eagle in Italy‚ we assume that the commercial building‚ which represents a cash-generating unit (CGU)‚ meets the requirement for a recoverable test under IFRS. The impairment loss is required when the building’s book value exceeds the higher of the asset’s value-in-use and fair value less costs to sell. Carrying value 1‚100 > 900 Higher of Value in use (900)
Premium Depreciation Generally Accepted Accounting Principles Asset
1‚400 Supplies 3‚000 (e) 100 2‚900 2‚900 Equipment 34‚800 34‚800 34‚800 Accumulated depreciation $1‚600 (b) 300 $1‚900 $1‚900 Accounts payable 5‚400 5‚400 5‚400 Salary payable (c) 800 800 800 Thomas‚ capital 35‚700 35‚700 35‚700 Thomas‚ drawing 2‚100 2‚100 2‚100 Service revenue 8‚600 (a) 600 9‚200 $9‚200 Depreciation expense (b) 300 300 $300 Salary expense 1‚700 (c) 800 2‚500 2‚500 Rent expense (d)
Premium Generally Accepted Accounting Principles Balance sheet Accounts receivable
Harnischfeger Corporation Teaching Note INTRODUCTION The purpose of the "Harnischfeger Corporation" case is to expose students to the managerial motives for making major financial reporting policy changes. Generally accepted accounting principles (GAAP) allow companies wide latitude in the choice of accounting policies. After a firm chooses a set of accounting policies‚ current accounting rules permit changes from one alternative policy to another at the discretion of the management
Premium Depreciation Income statement Financial statements
ACCOUNTING FOR INCOME TAXES F 1. Taxable income is a tax accounting term and is also referred to as income before taxes. F 2. Pretax financial income is the amount used to compute income taxes payable. T 3. Deferred tax expense is the increase in the deferred tax liability balance from the beginning to the end of the accounting period. T 4. A deferred tax liability represents the increase in taxes payable in future years as a result of taxable temporary differences existing at the end
Free Income tax Tax Taxation