review

Question 1

current ratio

Answer 1

current assets/current liabilities

Question 2

quick ratio

Answer 2

(current assets - inventory)/current liabilities

Question 3

debt to equity

Answer 3

total liabilities/shareholders’ equity

Question 4

OCI

Answer 4

1. unrealized gains or losses on AFS securities
2. unrealized gains or losses from pension costs.
3. foreign currency translation adjustments.
4. unrealized gains or losses from certain derivative transactions.

Question 5

SCF:operating

Answer 5

interest income/expense and dividend income

Question 6

dividend revenue financing or operating activities?

Answer 6

financing. dividend income is operating. under IFRs interest and dividends paid can be classified as either an operating or an financing activity, while interest and dividends received can be classified as either operating or investing.

Question 7

SCF:indirect method

Answer 7

a change in assets means cash moved in the opposite direction.
a change in liabilities means cash moved in the same direction.