Question 1

The net assets of a business are equal to

Accepted Answer

A)  current assets minus current liabilities. 
B)  total assets plus total liabilities. 
C)  total assets minus total shareholders' equity. 
D)  none of these choices are correct. 
A)  current assets minus current liabilities. 
B)  total assets plus total liabilities. 
C)  total assets minus total shareholders' equity. 
D)  none of these choices are correct.

Question 2

If ordinary shares were issued to acquire an CHF8,000 machine, how would the transaction appear on the statement of cash flows?

Accepted Answer

A)  It would depend on whether or not the direct method or the indirect method was used. 
B)  It would be a positive CHF8,000 in the financing section and a negative CHF8,000 in the investing section. 
C)  It would be a negative CHF8,000 in the financing section and a positive CHF8,000 in the investing section. 
D)  It would not appear on the statement of cash flows but rather in a cash flow note. 
A)  It would depend on whether or not the direct method or the indirect method was used. 
B)  It would be a positive CHF8,000 in the financing section and a negative CHF8,000 in the investing section. 
C)  It would be a negative CHF8,000 in the financing section and a positive CHF8,000 in the investing section. 
D)  It would not appear on the statement of cash flows but rather in a cash flow note.

Question 3

Houghton Company has the following items: share capital-ordinary, €820,000; treasury shares, €85,000; deferred taxes, €100,000 and retained earnings, €313,000. What amount should Houghton Company report as total equity?

Accepted Answer

A)  €948,000. 
B)  €1,048,000. 
C)  €1,148,000. 
D)  €1,218,000. 
A)  €948,000. 
B)  €1,048,000. 
C)  €1,148,000. 
D)  €1,218,000.

Question 4

Caroline, Inc. exchanged a tract of land it held in Mississippi for a tract of land owned by Rosalie Corporation located in Illinois. How is this transaction reported on Caroline, Inc.'s statement of cash flows?

Accepted Answer

A)  As a cash inflow from investing activities and a cash outflow from financing activities. 
B)  As a cash inflow and a cash outflow from investing activities. 
C)  As a cash inflow and a cash outflow from financing activities. 
D)  This transaction is not reported in the body of the statement of cash flows. 
A)  As a cash inflow from investing activities and a cash outflow from financing activities. 
B)  As a cash inflow and a cash outflow from investing activities. 
C)  As a cash inflow and a cash outflow from financing activities. 
D)  This transaction is not reported in the body of the statement of cash flows.

Question 5

Under IFRS a company may use the term "reserve" to include items such as retained earnings, share premium, and accumulated other comprehensive income.

Accepted Answer

A) True 
 B)False

The net assets of a business are equal to

If ordinary shares were issued to acquire an CHF8,000 machine, how would the transaction appear on the statement of cash flows?

Houghton Company has the following items: share capital-ordinary, €820,000; treasury shares, €85,000; deferred taxes, €100,000 and retained earnings, €313,000. What amount should Houghton Company report as total equity?

Caroline, Inc. exchanged a tract of land it held in Mississippi for a tract of land owned by Rosalie Corporation located in Illinois. How is this transaction reported on Caroline, Inc.'s statement of cash flows?

Under IFRS a company may use the term "reserve" to include items such as retained earnings, share premium, and accumulated other comprehensive income.

Financial Reporting and Accounting Standards

Conceptual Framework for Financial Reporting

The Accounting Information System

Income Statement and Related Information

Accounting and the Time Value of Money

Cash and Receivables

Valuation of Inventories: a Cost-Basis Approach

Inventories: Additional Valuation Issues

Acquisition and Disposition of Property, Plant, and Equipment

Depreciation, Impairments, and Depletion

Intangible Assets

Filters

Exam 5: Statement of Financial Position and Statement of Cash Flows

The net assets of a business are equal to

If ordinary shares were issued to acquire an CHF8,000 machine, how would the transaction appear on the statement of cash flows?

Houghton Company has the following items: share capital-ordinary, €820,000; treasury shares, €85,000; deferred taxes, €100,000 and retained earnings, €313,000. What amount should Houghton Company report as total equity?

Caroline, Inc. exchanged a tract of land it held in Mississippi for a tract of land owned by Rosalie Corporation located in Illinois. How is this transaction reported on Caroline, Inc.'s statement of cash flows?

Under IFRS a company may use the term "reserve" to include items such as retained earnings, share premium, and accumulated other comprehensive income.

Financial Reporting and Accounting Standards

Conceptual Framework for Financial Reporting

The Accounting Information System

Income Statement and Related Information

Accounting and the Time Value of Money

Cash and Receivables

Valuation of Inventories: a Cost-Basis Approach

Inventories: Additional Valuation Issues

Acquisition and Disposition of Property, Plant, and Equipment

Depreciation, Impairments, and Depletion

Intangible Assets

Filters