hen computing net cash flow from operating activities using the indirect method, an addition to net income is most likely to occur when there is a:
A. gain on the sale of an asset.
B. loss on the retirement of debt.
C. decrease in a deferred tax liability.
Es la B.
Puse la A. obviamente ya viene incorporado en el net income, y la c tmb que no tenia nidea.B is correct. An addition to net income is made when there is a loss on the retirement of debt, which is a non-operating loss. A gain on the sale of an asset and a decrease in deferred tax liability are both subtracted from net-income.
In 2018, the company declared and paid cash dividends of USD10 million and recorded depreciation expense in the amount of USD25 million. The company considers dividends paid a financing activity. The company’s 2018 cash flow from operations (in USD millions) was closest to:
A. 25.
B. 45.
C. 75.
Puse la A, era la B
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General feedback
B is correct. All dollar amounts are in millions. Net income (NI) for 2018 is USD35. This amount is the increase in retained earnings, USD25, plus the dividends paid, USD10. Depreciation of USD25 is added back to net income, and the increases in accounts receivable, USD5, and in inventory, USD3, are subtracted from net income because they are uses of cash. The decrease in accounts payable is also a use of cash and, therefore, a subtraction from net income. Thus, cash flow from operations is USD25 + USD10 + USD25 – USD5 – USD3 – USD7 = USD45.
Under IFRS, dividends received are least likely classified as which type of cash flow on the cash flow statement?
A. Financing
B. Operating
C. Investing
puse La c, es la a, financing
siempre crei que under ifrs solo se podia financing y operating pero receivved tiene sentido qeu sea de investing más d4e que se financie con eso
The following financial data are available for a company:
Metric Current Year (€ thousands) Prior Year (€ thousands)
Cost of goods sold 600 400
Inventory 500 600
Accounts payable 200 400
Accounts receivable 400 900
Cash paid to suppliers (in thousands) in the current year is closest to:
A. €900.
B. €700.
C. €300.
Correct Answer:
B. €700.
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Based on your answer
Incorrect. Instead of adding the decrease in A/P, it subtracted the 200 from purchases from suppliers.
bastante tonto por mi parte
Interest payments can be reported either as operating or financing cash flow under IFRS, but they can be reported only as operating cash flow under US GAAP. The interest payment was originally reported as financing activity under IFRS, but under US GAAP it would be an operating activity. Therefore, under US GAAP, cash flow from financing activities would be higher and operating cash flows lower by the same amount.
y en lo received imagino que igual que gaap
When a firm can choose where in the cash flow statement to classify interest received, which of the following choices is the most appropriate?
Incorrect answer:
A. As an financing activity under IFRS
B. As an investing activity under US GAAP
C. As a operating activity under IFRS
, Not Selected
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Based on your answer
Incorrect. Under IFRS, interest received may be classified as operating or investing activities; not a financing activity.
An analyst gathers the following information from a company’s current financial statements:
Cash Flow Statement (Indirect Method) for Year Ended 31 December ($ millions)
Net income 2,520
Depreciation 1,178
Change in accounts receivable 62
Change in accounts payable 295
Change in inventory (792)
Operating cash flow 4,723
Income Statement for Year Ended 31 December ($ millions)
Revenue 26,430
Cost of goods sold 12,831
Operating expenses 9,802
Income tax expense 1,277
Net income 2,520
If the company uses the direct method to prepare its cash flow statement, the cash paid to suppliers (in $ millions) will be closest to:
A. 11,744.
B. 12,334.
C. 12,536.
, Not Selected
Es la a, puse la b por descarte.
me rallo´pasar parte a parte.
es una putaa tontería que no pensé joder
Which of the following is most likely added back to net income when preparing a cash flow statement under the indirect method?
Incorrect answer:
A. Gain on sale of assets
B. Amortization of bond discount
C. Decrease in deferred tax liability
Correct Answer:
B. Amortization of bond discount
Puse la A, por temas de inflows y outflows. la verdad. mala mía
An analyst gathers the following information (in $ thousands) about a company:
Net income 10,000
Gain on debt retirement 500
Decrease in working capital 2,000
Cash flow from operating activities (in $ thousands) is:
A. 8,500.
B. 11,500.
C. 12,500.
Correct Answer:
B. 11,500.
Puse la A. non pense en que el working capital es assets - liabilities y por tanto que suba, significa que suba los assets o baje los liabilities lo cual es un cash outflow. sabs?
On the statement of cash flows, interest payments may be classified as a financing cash flow under:
A. IFRS only.
B. US GAAP only.
C. both IFRS and US GAAP.
Puse la C, es solo la .a
Pero tío pensé que podia ser los dos interest payments es como super financing coñooo. he de mirarme esto muchomás
An analyst gathers the following information about a company’s equipment base:
Beginning balance accumulated depreciation €7,000,000
Ending balance accumulated depreciation €8,000,000
Depreciation expense of equipment €4,000,000
The company sold equipment having a historical cost of €5,000,000 and reported a loss on sale of €250,000. The cash received from the sale of equipment is:
A. €750,000.
B. €1,750,000.
C. €4,750,000.
LA TUve bien, es la B. pero creo que me podré equivocar. aqui es hacer unjuego tmb con el accumulated dep y quitartelo todo y ver cuanto pierdse
Correct because selling price (cash inflow) minus book value equals gain or loss on sale; therefore, gain or loss on sale plus book value equals selling price (cash inflow).
Accumulated depreciation on the equipment sold = Beginning balance accumulated depreciation + Depreciation expense – Ending balance accumulated depreciation; or = €7,000,000 + €4,000,000 – €8,000,000 = €3,000,000.
Book value of the equipment sold = Historical cost of equipment sold – Accumulated depreciation on equipment sold; or = €5,000,000 – €3,000,000 = €2,000,000. Cash received from sale of equipment = Book value of the equipment sold – Loss on sale = €2,000,000 – €250,000 = €1,750,000.
On the statement of cash flows, cash dividends paid may be classified as an operating activity under:
A. IFRS only.
B. US GAAP only.
C. both IFRS and US GAAP.
Me va a dar algo con estas.
es la A.
Under the indirect method of reporting cash flow from operating activities, a decrease in deferred income tax liabilities is:
A. ignored.
B. added back to net income.
C. subtracted from net income.
Es la C, puse la A
Incorrect because regardless of the originating source of the deferred tax liability, all changes in deferred tax liabilities will either be added back or subtracted from net income under the indirect method of reporting cash flow from operations.
An analyst gathers the following information (in £ millions) about a company:
Other operating expenses 4,500
Decrease in prepaid expenses 200
Increase in other accrued liabilities 300
Cash paid for other operating expenses (in £ millions) is:
A. 4,000.
B. 4,400.
C. 4,600.
Puse B, es la A.
- Cash flows from taxes on income must be separately disclosed under:
A. IFRS only.
B. US GAAP only.
C. both IFRS and US GAAP.
Solution
C is correct. Taxes on income are required to be separately disclosed under IFRS and US GAAP. The disclosure may be in the cash flow statement or elsewhere.
