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Learning Activity 3: Attempt review
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Match the definitions on the left with the correct drop down on the right, in the table below:
Revenues earned or expenses incurred which impact a company's net income on the income statement. They
may also affect the balance sheet, as they involve non-cash assets and liabilities.
The wealth in the form of money or property owned by a business. Or the owner’s contribution to or interest in a
business.
The value of ownership interest in the business, calculated by deducting liabilities from assets.
Any financial expense or amount owed. Or a current obligation of the company arising from past events, the
settlement of which is expected to result in an outflow from the entity of resources
Accruals
Capital
Equity
Liability
Your answer is correct.
Equity refers to the net assets or residual interest of an owner or shareholder and is expressed as:
a.
Assets - Liabilities = Equity
b.
Liabilities + Assets = Equity
c.
Assets divided by Assets = Equity
d.
Current Assets divided by Current Liabilities = Equity
e.
Interest payable less interest in advance = Equity
15/11/2023, 15:10
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Expenses are the opposite of revenues. Wealth decreases because:
a.
Operating costs have to be paid
b.
Customers have to be given the goods they have paid for
c.
Long term assets may wear out as they are used to earn revenue and liabilities may be incurred as part of the process.
d.
All of the above
When expenses are greater than the revenue it is referred to as:
a.
Liability
b.
Net Cash
c.
Profit
d.
Depreciation
e.
Loss
When the revenue is greater than expenses it is called:
a.
Asset
b.
Profit
c.
Cash in the Bank
d.
Loss
e.
Leverage
When we look at understanding financials for clients, the three key financial statements are referred to as:
a.
Income Statement, Statement of Cash Flow and the Balance Sheet
b.
Statement of Position, Statement of Performance and Statement of Cash Flow
c.
Income Statement, Profit and Loss Report, Statement of Cash at Bank
d.
Tax return, Assets statement, Depreciation Statement
15/11/2023, 15:10
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Which of the following Cash Flow inflows and outflows would NOT be classified as an investment activity?
a.
Sales of the property, plant and equipment that a business uses
b.
Purchase of shares held as investment
c.
Cash received from issue of shares
d.
Acquisition of property, plant and equipment
e.
Acquisition of shares and debentures for investment purposes
By analysing the cash flow statement the user can evaluate management’s strategy for managing cash and make a better judgment
of the business’s liquidity, solvency risk and opportunities than could be made just from the balance sheet and income statement.
Select one:
True
False
Cash flow analysis is an important managerial activity to ensure there is evidence of the ongoing liquidity of the business.
Select one:
True
False
Current liabilities are debts or estimated claims on the resources of a company that are expected to be paid within the normal
operation cycle of the enterprise (usually one year).
Select one:
True
False
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If cash flow is tight a business should always borrow money to pay expenses.
Select one:
True
False
Shareholder Equity is the sum of shareholders’ direct investment (share capital) and indirect investment (retained profits and
reserves).
Select one:
True
False
The Income Statement for a business provides information on the business’s profitability for a period of time – matching revenues
during a period against expenses incurred in earning the revenue.
Select one:
True
False
The key test for revenue recognition is whether the goods or services have been delivered or provided to the customer. The wealth
increases because the customer has paid cash for the goods or has promised to pay cash (accounts receivable for goods or
services).
Select one:
True
False
15/11/2023, 15:10
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The statement of cash flows is a financial statement that summarises the amount of cash and cash equivalents being received and
being paid
Select one:
True
False
The three main elements of a Balance Sheet are assets, liabilities and owners’ net equity:
Select one:
True
False
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Sheet1
FINA310 IP TEMPLATE FOR STUDENTS
Student name:
Date:
ACTUAL
FORECAST
Current Year
Next Year
Total Revenue
71,879
Cost of Revenue
(51,125)
Gross Profit
20,754
Operating Expenses:
Selling, General, and Administrative
(14,248)
Research and Development
Special Income/Other Charges
S
(2,194)
Total Operating Expenses
(16,442)
Operating Income
S
4,312
Net Interest Income
(666)
edite
Pre-Tax Income
3,646
Provision for Income Tax (19.5%)
(711)
Net Income
2,935
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The future value of $200 received
today and deposited at 8 percent
compounded semi-annually for
three years is
Select one:
a. $352
b. $158
C. $253
d. $380
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ring the first month of operations, Johnson Services, Ic., completed the following transactions:
(Click the icon.to view the transaction data.)
ead the requirements.
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s. Exclude explanations from journal entries.)
Lequirement 1. Record each transaction in the
Mar 2: Johnson Services received $62,000 cash
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Question 33.
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(Learning Objective 3: Record note payable transactions) Dean Sales Companycompleted the following note payable transactions:2018Jul Purchased delivery truck costing $58,000 by issuing aone-year, 4% note payable.Dec 31 Accrued interest on the note payable.2019Jul 1 Paid the note payable at maturity.1Requirements1. How much interest expense must be accrued at December 31, 2018? (Round your answerto the nearest whole dollar.)2. Determine the amount of Dean Sales’ final payment on July 1, 2019.3. How much interest expense will Dean Sales report for 2018 and for 2019? (If needed,round your answer to the nearest whole dollar.)
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Problem 9-94B (Algorithmic)
Note Computations and Entries (Straight Line)
On January 1, 2020, Benton Corporation borrowed $930,000 with a 10-year, 8.75% note, interest payable semiannually on June 30 and
December 31. Cash in the amount of $915,500 was recelved when the note was issued.
Required:
1. Prepare the necessary journal entry at January 1, 2020.
2020 Jan. 1
Record issuance of notes at discount
2. Prepare the necessary journal entry at June 30, 2020. If required, round amounts to the nearest dollar.
2020 June 30
Record interest expense
3. Prepare the necessary journal entry at December 31, 2020. If required, round amounts to the nearest dollar.
2020 Dec. 31
11:36 AM
a
4/6/2021
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(Learning Objective 3: Account for a short-term note payable) Jamison SportsAuthority purchased inventory costing $25,000 by signing a 12%, six-month, short-term notepayable. The purchase occurred on January 1, 2018. Jamison will pay the entire note (principaland interest) on the note’s maturity date of July 1, 2018. Journalize the company’s (a) purchaseof inventory and (b) payment of the note plus interest on July 1, 2018.
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Incorrect
Your answer is incorrect.
Salma wants to save money to open a tutoring center. She buys an annuity with a monthly payment of $27 that pays 3.7% interest, compounded
monthly. Payments will be made at the end of each month. Find the total value of the annuity in 10 years.
Do not round any intermediate computations, and round your final answer to the nearest cent. If necessary, refer to the list of financial formulas.
圖
Answer Submitted:
00
$12345.92
Correct Answer:
$3913.49
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