ACC2363_Assignment 8_Q #11 Sale of Building

Cash flows relating to asset held for rental to others are classified asA. OperatingB. FinancingC. InvestingD. Either Investing or Operating

Which of the following is considered to be a spontaneous source of financing? Select one: a. Accounts receivable O b. Accounts payable Oc Operating leases O d. Inventory The focus of current asset management is on: Select one: a. cash, accounts receivable. and inventory levels. O b. all the given answers are correct. c. property, plant. and equipment acquisition. O d. investments in marketable securities.

Select all that are true with respect to depreciation. Group of answer choices Depreciation is a cash flow outflow at the time it is recorded in the financial statements Depreciation itself is not a cash flow Accounting depreciation impacts cash flow, Tax depreciation does not Accounting depreciation does not impact cash flow, Tax depreciation does impact cash flow The depreciation tax shield is a relevant cash flow for decision making

Indicate where the event purchased land and a building with a mortgage would appear, if at all, on the indirect statement of cash flows. Select one: a. Investing activities section O b. Does not represent a cash flow c Financing activities section O d.Operating activities section

Instructions: Match the cash expenditures given below with the appropriate accounting treatment. An individual classification may be used more than once, or not at all.   Treatments   A. Record the expenditure as an asset and depreciate it. B. Record the expenditure as an asset and amortize it. C. Record the expenditure as an asset and deplete it. D. Record the expenditure as an asset but do not systematically allocate it to expense. E. Record the expenditure as an expense in the current period. F. None of the above is appropriate.   Expenditures   ____ 1. Acquired a truck.   ____ 2. Purchased a copyright from an author.   ____ 3. Paid for minor repairs to a building.   ____ 4. Purchased a producing silver mine.   ____ 5. Paid attorney's fees in acquiring land.   ____ 6. Paid attorney's fees to defend a patent.   ____ 7. Paid prior owner’s real estate taxes in acquiring land.   ____ 8. Paid insurance to transport new equipment to your plant.   ____ 9. Purchased timberlands to establish…

Multiple choice   1. The transaction costs of acquiring an investment measured at amortized cost are A. Included in the initial measurement of the investment and amortized to profit or loss using the effective interest method.  B. Initiallt deferred and recognized in profit or loss only when the aaset is derecognized or becomes impaired.  C. Initially deferred and recognized directly in equity when the asset is derecognized or becomes impaired. D. Expensed immediately on acquisition date.    2. An entity acquired 10 year bonds at a premium. The investment is measured at amortized cost . Seven years after the acquisition, the entity sold 90% of the bonds at a discount. Which is the following is true? A. Gain is realized on the sale. B. The remaining 10% should be reclassified out of the amortized cost measument category.  C. Loss is realized on the sale.  D. B and C   3. There are no payments made during the life of this type of bond; both the principal and interest( computed on a…

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The current asset financing policy that calls for matching the maturities of assets with the maturities of liabilities is known as the a. permanent current ratio approach b. temporary net working capital approach C. conservative approach d. self-liquidating approach e. aggressive approach

PLEASE USE ACCOUNTS OUT OF THIS LIST: Accumulated Other Comprehensive IncomeAllowance for Investment ImpairmentBond Investment at Amortized CostCashDividends ReceivableDividend RevenueFV-NI InvestmentsFV-OCI InvestmentsGain on Disposal of Investments in AssociateGain on Disposal of Investments - Cost/Amortized CostGain on Disposal of Investments - FV-NIGain on Disposal of Investments - FV-OCIGain or Loss in Value of Investment PropertyGST ReceivableInterest ExpenseInterest IncomeInterest PayableInterest ReceivableInvestment in AssociateInvestment Income or LossLoss on Discontinued OperationsLoss on Disposal of Investments - Cost/Amortized CostLoss on Disposal of Investments - FV-NILoss on Disposal of Investments - FV-OCILoss on ImpairmentNo EntryNote Investment at Amortized CostOther InvestmentsRecovery of Loss from ImpairmentRetained EarningsUnrealized Gain or LossUnrealized Gain or Loss - OCI

PLEASE USE ACCOUNTS FROM THIS LIST Accumulated Other Comprehensive IncomeAllowance for Investment ImpairmentBond Investment at Amortized CostCashDividends ReceivableDividend RevenueFV-NI InvestmentsFV-OCI InvestmentsGain on Disposal of Investments in AssociateGain on Disposal of Investments - Cost/Amortized CostGain on Disposal of Investments - FV-NIGain on Disposal of Investments - FV-OCIGain or Loss in Value of Investment PropertyGST ReceivableInterest ExpenseInterest IncomeInterest PayableInterest ReceivableInvestment in AssociateInvestment Income or LossLoss on Discontinued OperationsLoss on Disposal of Investments - Cost/Amortized CostLoss on Disposal of Investments - FV-NILoss on Disposal of Investments - FV-OCILoss on ImpairmentNo EntryNote Investment at Amortized CostOther InvestmentsRecovery of Loss from ImpairmentRetained EarningsUnrealized Gain or LossUnrealized Gain or Loss - OCI

choose from the following accounts: Accumulated Other Comprehensive Income Allowance for Investment Impairment Bond Investment at Amortized Cost Cash Commission Expense Dividends Receivable Dividend Revenue FV-NI Investments FV-OC|Investments Gain on Disposal of Investments - FV-NI Gain on Disposal of Investments - FV-OCI Gain on Sale of Investments GST Receivable Interest Expense Interest Income Interest Payable Interest Receivable Investment in Associate Investment Income or Loss Loss on Discontinued Operations Loss on Disposal of Investments FV-NI Loss on Disposal of Investments FV-OCI Loss on Impairment Loss on Sale of Investments No Entry Note Investment at Amortized Cost Other Investments Recovery of Loss from Impairment Retained Earnings Unrealized Gain or Loss Unrealized Gain or Loss - OCI

choose from the following accounts: Accumulated Other Comprehensive Income Allowance for Investment Impairment Bond Investment at Amortized Cost Cash Commission Expense Dividends Receivable Dividend Revenue FV-NI Investments FV-OC|Investments Gain on Disposal of Investments - FV-NI Gain on Disposal of Investments - FV-OCI Gain on Sale of Investments GST Receivable Interest Expense Interest Income Interest Payable Interest Receivable Investment in Associate Investment Income or Loss Loss on Discontinued Operations Loss on Disposal of Investments FV-NI Loss on Disposal of Investments FV-OCI Loss on Impairment Loss on Sale of Investments No Entry Note Investment at Amortized Cost Other Investments Recovery of Loss from Impairment Retained Earnings Unrealized Gain or Loss Unrealized Gain or Loss - OCI

choose from the following accounts: Accumulated Other Comprehensive Income Allowance for Investment Impairment Bond Investment at Amortized Cost Cash Commission Expense Dividends Receivable Dividend Revenue FV-NI Investments FV-OC|Investments Gain on Disposal of Investments - FV-NI Gain on Disposal of Investments - FV-OCI Gain on Sale of Investments GST Receivable Interest Expense Interest Income Interest Payable Interest Receivable Investment in Associate Investment Income or Loss Loss on Discontinued Operations Loss on Disposal of Investments FV-NI Loss on Disposal of Investments FV-OCI Loss on Impairment Loss on Sale of Investments No Entry Note Investment at Amortized Cost Other Investments Recovery of Loss from Impairment Retained Earnings Unrealized Gain or Loss Unrealized Gain or Loss - OCI

Accounting type Question: Sale of long term investment indicates: A. a change in current assets B. application of funds C. increase in working capital D. source of funds

Th e sale of a building for cash would be classifi ed as what type of activity on the cash fl ow statement? C . Financing.

Concord Limited, a public company that follows IFRS and has a calendar year end, made the following purchases of investments in 2023. Concord intends to sell these investments to earn short-term profits from appreciation in their prices and accounts for the investments using the FV-NI model. This is the first year in which Concord invested in equity securities: 1. 2. On March 20, purchased 5,400 shares of Wu Inc. common shares at $29 per share plus commission of $450. On August 15, purchased 3,100 shares of Xi Inc. common shares at $27 per share plus commission of $400. On June 30, Concord sold 3,240 shares of Wu Inc. at $31 less commission of $660. The December 31, 2023 market value of the Wu shares was $32 and of the Xi shares was $26.