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5. State your preference between the direct and indirect method for reporting Cash Flows from Operation activities. Justify your answer. (Chapter 5, Section 2.3)

5. State your preference between the direct and indirect method for reporting Cash Flows from Operation activities. Justify your answer. (Chapter 5, Section 2.3)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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65 Essay Questions 5. State your preference between the direct and indirect method for reporting Cash Flows from Operation activities. Justify your answer. (Chapter 5., Section 2.3) 6. Assume that a company purchases land for €100,000, paying €20,000 cash and borrowing the remainder with a long-term bank loan. What is the cash flow from Financing activities? How do you expect the company's CFO, CFI and CFF to change in the following years based on this purchase, assuming the company works with IFRS? (Chapter 5, Section 3.2) 7. Discuss the differences in the evaluation methods for PP&E permitted under IFRS and under US GAAP. What other differences exist in the measurement of PP&E between IFRS and US GAAP and how do these differences affect the resulting financial statements. (Chapter 4, Section 4.1) S. Polyzos - FINA21 Midterm Revision
Transcribed Image Text:65 Essay Questions 5. State your preference between the direct and indirect method for reporting Cash Flows from Operation activities. Justify your answer. (Chapter 5., Section 2.3) 6. Assume that a company purchases land for €100,000, paying €20,000 cash and borrowing the remainder with a long-term bank loan. What is the cash flow from Financing activities? How do you expect the company's CFO, CFI and CFF to change in the following years based on this purchase, assuming the company works with IFRS? (Chapter 5, Section 3.2) 7. Discuss the differences in the evaluation methods for PP&E permitted under IFRS and under US GAAP. What other differences exist in the measurement of PP&E between IFRS and US GAAP and how do these differences affect the resulting financial statements. (Chapter 4, Section 4.1) S. Polyzos - FINA21 Midterm Revision
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