Sonic Co Ltd provides the following information for the period ended 30 June 2015: \[\begin{array} { | l | r |} \hline & \$ 0 \\ \hline \text { Opening balance loans } & 800 \\ \hline \text { Closing balance loans } & 550 \\ \hline \text { Opening balance of interest payable } & 120 \\ \hline \text { Closing balance of interest payable } & 130 \\ \hline \text { Interest expense } & 75 \\ \hline \text { Opening balance trade creditors } & 400 \\ \hline \text { Closing balance trade creditors } & 600 \\ \hline \text { Opening balance of share capital } & 3000 \\ \hline \text { Closing balance of share capital } & 3900 \\ \hline \text { Opening balance of dividends payable } & 430 \\ \hline \text { Closing balance of dividends payable } & 520 \\ \hline \text { Dividends proposed (statement of comprehensive income) } & 520 \\ \hline \text { Opening balance asset revaluation reserve } & 990 \\ \hline \text { Closing balance asset revaluation reserve } & 840 \\ \hline \text { Purchase of land for shares with market value of } & 700 \\ \hline \end{array}\] During the period Sonic Co Ltd issued debentures with a face value of $1 000 000 at a premium of $560 000.All transactions are in cash unless otherwise indicated.What is the net cash flow from financing activities for the period?

A) Net cash outflow $480 000 B) Net cash outflow $290 000 C) Net cash inflow $270 000 D) Net cash inflow $1 080 000 A) Net cash outflow $480 000 B) Net cash outflow $290 000 C) Net cash inflow $270 000 D) Net cash inflow $1 080 000

Cod Ltd provides the following information for the period ended 30 June 2014: $\begin{array}{|l|r|} \hline & \$ 0 \\ \hline \text { Cost of goods sold for the year } & 110 \\ \hline \text { Discounts received for early payment to suppliers } &8\\ \hline \text { Wages } & 62 \\ \hline \text { Opening balance of trade creditors } & 40 \\ \hline \text { Closing balance of trade creditors } & 45 \\ \hline \text { Opening balance of inventory } & 30 \\ \hline \text { Closing balance of inventory } & 15 \\ \hline \end{array}$ What is the cash paid to suppliers for the period?

A) $82 000 B) $144 000 C) $184 000 D) $122 000 A) $82 000 B) $144 000 C) $184 000 D) $122 000

Exam 19: The Statement of Cash Flows

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AASB 107 requires that a note to the accounts shall disclose a reconciliation of cash flows from operating activities to operating profit or loss after income tax as reported in the statement of comprehensive income.The correct adjustments to the operating profit/loss after tax include:

(Multiple Choice)

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Question 41

What method does AASB 107 encourage for the reporting of cash flows from operating activities and what does it mean for the presentation of this category in the statement of cash flows?

(Multiple Choice)

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Question 42

Which of the following tables provides an appropriate classification for the items listed for the statement of cash flows for a retailing business?

(Multiple Choice)

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Question 43

Explain how the form and content of the statement of cash flow could change as a result of a joint project by the IASB and the US Financial Accounting Standards Board (FASB)investigating the presentation of financial statements.

(Essay)

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Question 44

The statement of cash flows effectively provides a reconciliation of the opening and closing cash balances in the statement of financial position.

(True/False)

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Question 45

Where the entity uses the direct method a note to the accounts reconciling cash flows from operating activities to net profit is required because:

(Multiple Choice)

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Question 46

Which of the following statements is correct in accordance with AASB 107 Statement of Cash Flows?

(Multiple Choice)

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Question 47

Accounts that represent cash or cash equivalents include:

(Multiple Choice)

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Question 48

The statement of cash flows should be subdivided into selling,financing and investing categories.

(True/False)

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Question 49

In accordance with AASB 107 Statement of Cash Flows,cash receipts from sales of property,plant and equipment are classified as cash flows from operating activities.

(True/False)

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Question 50

A reporting entity is required to prepare a statement of cash flows that is in accordance with the requirements of AASB 107 and shall be presented as an integral part of the notes to the accounts.

(True/False)

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Question 51

Discuss the treatment of interest and dividends in accordance with AASB 107 Statement of Cash Flows.

(Essay)

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Question 52

To calculate the cash flow from the issue of debentures,the face value of the debentures would have to be adjusted by deducting any premium or adding any discount on issue.

(True/False)

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Question 53

Which combination is the appropriate operation to perform to the following accounts to reconcile net profit with net cash flows from operating activities?

(Multiple Choice)

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Question 54

Sonic Co Ltd provides the following information for the period ended 30 June 2015: \ 0 Opening balance loans 800 Closing balance loans 550 Opening balance of interest payable 120 Closing balance of interest payable 130 Interest expense 75 Opening balance trade creditors 400 Closing balance trade creditors 600 Opening balance of share capital 3000 Closing balance of share capital 3900 Opening balance of dividends payable 430 Closing balance of dividends payable 520 Dividends proposed (statement of comprehensive income) 520 Opening balance asset revaluation reserve 990 Closing balance asset revaluation reserve 840 Purchase of land for shares with market value of 700 During the period Sonic Co Ltd issued debentures with a face value of $1 000 000 at a premium of $560 000.All transactions are in cash unless otherwise indicated.What is the net cash flow from financing activities for the period?

(Multiple Choice)

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Question 55

Survey research by Jones and Ratnatunga (1997)undertaken in Australia found that respondents indicated that,on average,the statement of cash flows:

(Multiple Choice)

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Question 56

Both IASB and FASB propose that financial statements should be presented in a more aggregated manner.

(True/False)

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Question 57

In accordance with AASB 107 Statement of Cash Flows,a bonus share issue is to be classified under financing activities.

(True/False)

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Question 58

Cod Ltd provides the following information for the period ended 30 June 2014: \ 0 Cost of goods sold for the year 110 Discounts received for early payment to suppliers 8 Wages 62 Opening balance of trade creditors 40 Closing balance of trade creditors 45 Opening balance of inventory 30 Closing balance of inventory 15 What is the cash paid to suppliers for the period?

(Multiple Choice)

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Question 59

If a business consistently has positive cash flows from financing and negative cash flows from investing and operating activities,this is a positive sign for the business.

(True/False)

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Question 60

Showing 41 - 60 of 77

Exam 19: The Statement of Cash Flows

AASB 107 requires that a note to the accounts shall disclose a reconciliation of cash flows from operating activities to operating profit or loss after income tax as reported in the statement of comprehensive income.The correct adjustments to the operating profit/loss after tax include:

What method does AASB 107 encourage for the reporting of cash flows from operating activities and what does it mean for the presentation of this category in the statement of cash flows?

Which of the following tables provides an appropriate classification for the items listed for the statement of cash flows for a retailing business?

Explain how the form and content of the statement of cash flow could change as a result of a joint project by the IASB and the US Financial Accounting Standards Board (FASB)investigating the presentation of financial statements.

The statement of cash flows effectively provides a reconciliation of the opening and closing cash balances in the statement of financial position.

Where the entity uses the direct method a note to the accounts reconciling cash flows from operating activities to net profit is required because:

Which of the following statements is correct in accordance with AASB 107 Statement of Cash Flows?

Accounts that represent cash or cash equivalents include:

The statement of cash flows should be subdivided into selling,financing and investing categories.

In accordance with AASB 107 Statement of Cash Flows,cash receipts from sales of property,plant and equipment are classified as cash flows from operating activities.

A reporting entity is required to prepare a statement of cash flows that is in accordance with the requirements of AASB 107 and shall be presented as an integral part of the notes to the accounts.

Discuss the treatment of interest and dividends in accordance with AASB 107 Statement of Cash Flows.

To calculate the cash flow from the issue of debentures,the face value of the debentures would have to be adjusted by deducting any premium or adding any discount on issue.

Which combination is the appropriate operation to perform to the following accounts to reconcile net profit with net cash flows from operating activities?

Survey research by Jones and Ratnatunga (1997)undertaken in Australia found that respondents indicated that,on average,the statement of cash flows:

Both IASB and FASB propose that financial statements should be presented in a more aggregated manner.

In accordance with AASB 107 Statement of Cash Flows,a bonus share issue is to be classified under financing activities.

If a business consistently has positive cash flows from financing and negative cash flows from investing and operating activities,this is a positive sign for the business.

An Overview of the Australian External Reporting Environment

The Conceptual Framework of Accounting and Its Relevance to Financial Reporting

Theories of Accounting

An Overview of Accounting for Assets

Depreciation of Property, plant and Equipment

Revaluations and Impairment Testing of Non-Current Assets

Inventory

Accounting for Intangibles

Accounting for Heritage Assets and Biological Assets

An Overview of Accounting for Liabilities

Accounting for Leases

Accounting for Employee Benefits

Share Capital and Reserves

Accounting for Financial Instruments

Revenue Recognition Issues

The Statement of Comprehensive Income and Statement of Changes in Equity

Accounting for Share-Based Payments

Accounting for Income Taxes

Accounting for the Extractive Industries

Accounting for General Insurance Contracts

Accounting for Superannuation Plans

Events Occurring After the End of the Reporting Period

Segment Reporting

Related Party Disclosures

Earnings Per Share

Accounting for Group Structures

Further Consolidation Issues I: Accounting for Intragroup Transactions

Further Consolidation Issues II: Accounting for Non-Controlling Interests

Further Consolidation Issues IV: Accounting for Changes in the Degree of Ownership of a Subsidiary

Accounting for Equity Investments,including Investments in Associates and Joint Arrangements

Accounting for Foreign Currency Transactions

Translating the Financial Statements of Foreign Operations

Accounting for Corporate Social Responsibility

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