MULTIPLE CHOICE QUESTIONS 1. The statement of cash flows should help investors and creditors assess each of the following except the a. entity's ability to generate future income. b. entity's ability to pay dividends. c. reasons for the difference between net income and net cash provided by operating activities. d. cash investing and financing transactions during the period.
Discuss how Hincapie should report the proposed preferred stock issue. * General Disclosure- either on the face of the financial statement by means of parenthetical disclosure, or in the Notes of the financial statements "o 505-10-50-2: If both financial position and results of operations are presented, disclosure of changes in the separate accounts comprising shareholders’ equity (in addition to retained earnings) and of the changes in the number of shares of equity securities during at least the most recent annual fiscal period and any subsequent interim period presented is required to make the financial statements sufficiently informative. Disclosure of such changes may take the form of separate statements or may be made in the basic financial statements or notes thereto " "o 505-10-50-3: An entity shall explain, in summary form within its financial statements, the pertinent rights and privileges of the various securities outstanding. Examples of information that shall be disclosed
If it did, how did the firm invest its excess cash? 6. If not, what were the sources of cash the firm used to pay for the capital expenditures and/or dividends? Sources of cash used to pay for capital expenditures and/or dividends are proceeds from long-term debt and short term borrowings. 7.
Cash flow from investing activities is cash inflows and outflows related to the purchase and disposal of long-lived productive assets and investments in the securities of other companies. Typical cash flows from investing activities include cash inflows from sale of property, plant, and equipment, sale of investments in debt or equity securities of other entities and collection of principal on loans to other entities. The cash outflows include purchase property, plant, and equipment, purchase of investments in debt or equity securities of other entities and to make loans to other entities. Cash flows from financing activities
Assigned to Andy b. Assigned to Andy Resources: Financial Accounting Theory and Analysis • Prepare responses to the following assignment from the e-text: o Ch. 13: Case 13-4 Application of SFAC No. 13 & Case 13-5 Lease Classifications • Case 13-4 Application of SFAC No. 13 On January 1, 2006, Lani Company
1.4 Compare and contrast debt and equity as a source of funds for financial claims. Financial claims: written promises to pay a specific sum of money (the principal) plus interest for the privilege of borrowing money over a period of time. Financial claims are issued by DSUs (liabilities) and purchased by SSUs (assets). Debt Funds: Equity Funds: Funds supplied in the form of a loan. Classified into short-term or long-term facilities Short-term = money Long-term = capital Suppliers of loans or debt funds face credit risk Credit risk: the risk the borrower won’t pay back loan Funds supplied in the form of the acquisition of an ownership share of a business.
It refers to gains and losses that may be incurred, when monetary transactions are settled in a foreign currency. Le ctu Pr of. re Az by ar m i Example of transactions exposure? -A company buys (or sells) on credit a product that is priced in a foreign currency. -A firm borrows (or lends) in a foreign currency.
Income budgets: a measure of how much cash is flowing into the business for a period of time through sales for example. Income budgets: a measure of how much cash is flowing into the business for a period of time through sales for example. Expenditure budgets: A plan of cash outgoing from the business to maybe cover costs for example, over a future period. Expenditure budgets: A plan of cash outgoing from the business to maybe cover costs for example, over a future period. Budget definition: Budgets are financial plans looking at expected costs and revenues over a future period.
Installment loan. Feedback That’s incorrect. A manufacturer with seasonal sales would be most likely to obtain an unsecured short-term term loan from a commercial bank to finance the need for a fixed amount of additional capital during the busy season. Question 3 of 100 (2A2-CQ09) Maydale Inc.’s financial statements show the following information. Flag for Review http://imalc.mycrowdwisdom.com/diweb/?wicket:bookmarkablePage=:com.digitalignite.mo... 4/9/2013 Digital Ignite :: Test Engine Page 2 of 54 Maydale’s accounts receivable turnover ratio is
E) both B and C of the above. Answer: A Topic: Chapter 2.1 Function of Financial Markets Question Status: Previous Edition 3) Which of the following can be described as involving direct finance? A) A corporation's stock is traded in an over-the-counter market. B) People buy shares in a mutual fund. C) A pension fund manager buys commercial paper in the secondary market.