1. Entity A operates in a hyperinflationary economy. EntityPAS 29324PROBLEMSPROBLEM 1: MULTIPLE CHOICE1. PAS 29 applies only in case ofc. hyperinflation.hem d. foreign operation.a. inflation.b. deflation.2. According to PAS 29, which of the following are restated inan entity's functional currency ishyperinflationary economy?a. monetary itemsb. nonmonetary itemsthat of acaseC. physical assetsd. intangible assets3. Entity A acquires land for 800,000 on February 14, 1998.Entity A's functional currency is that of a hyperinflationaryeconomy. The general price indices are as follows:February 14, 1998Average - 20x2December 31, 20x2100180190What is the restated amount of the land on December 31, 20x27a. 1,520,000b. 844,444c. 1,467,649d. 800,000PROBLEM 2: FOR CLASSROOM DISCUSSIONnas the following assets before restatement on December20x1:Accounts receivable, netP300,000Building, net900,000indices are as follows:May 21, 20x0Average - 20x2December 31, 20x1100180150

PAS 29 - This standard shall be applied to the financial statements, including the consolidated…

Answered: PROBLEM 1: MULTIPLE CHOICE 1. PAS 29…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Q4 Which of the following statements is NOT correct? (i) For an asset to be classified as a financial asset, cash or a right to receive cash or another financial asset should exist (ii) Cash constitutes a financial asset on its own. (iii) Any asset that can be interchanged for cash or cash equivalent should be classified as a financial asset even if there is no contractual right to receive cash or another financial asset. (iv) There is need for there to be a written and signed contract between buyer of the financial asset and the seller. Select one or more: a. (iii) and (iv) only b. (i), (ii), (iii) and (iv) c. (ii) only d. (i), (ii) and (iii) only
Capital expenditure involves: Select one: O a. Exchange of current liabilities to acquisition of fixed assets O b. None of the options O c. Exchange of current assets to acquisition of fixed assets O d. Exchange of current loans to acquisition of fixed assets O e. Exchange of current debt to acquisition of fixed assets
Multiple-Choice Exercise 11-2 (Algorithmic) Which of the following would be classified as a cash outflow from an operating activity? Oa. Purchase of land Ob. Payment for salaries of employees Oc. Distribution of a stock dividend Od. Purchase of an investment
Required: a. What is the ratio of real assets to total assets? (Hint: for this question, only include those listed under "Real assets") b. What is the ratio of real assets to total assets for nonfinancial firms in the following table? Assets Real assets Equipment and intellectual property Real estate Inventories Total real assets Financial assets Deposits and cash Marketable securities Required A $ Billion $ 8,345 14,423 2,724 $ 25,492 Required B $ 2,333 4,059 4,075 14,005 $ 24,472 $ 49,964 % Total 16.7% 28.9 5.5 51.0% 4.7% 8.1 8.2 28.0 49.0% 100.0% Liabilities and Net Worth Liabilities Debt securities Bank loans & mortgages Other loans Trade debt Other Total liabilities Complete this question by entering your answers in the tabs below. Net worth $ Billion Trade and consumer credit Other Total financial assets TOTAL Balance sheet of U.S. nonfinancial corporations Note: Column sums may differ from total because of rounding error. Source: Flow of Funds Accounts of the United States,…
Which statement is incorrect regarding contractual cash flows that are solely payments of principal and interest (SPPI)? a.Contractual cash flows that are SPPI on the principal amount outstanding are consistent with a basic lending arrangement. b.Principal is the fair value of the financial asset at initial recognition. c.An entity shall assesswhether contractual cash flows are SPPI on the principal amount outstanding for the currency in which the financial asset is denominated. d.An originated or a purchased financial asset can be a basic lending arrangement only if it is a loan in its legal form.
Under IFRS, how is presentation currency defined? The currency in which the financial statements are presented. The currency that uses the current rate The currency of the primary environment in which the entity operates. A currency other than the functional currency
PFRS 9 requires entities to measure their financial assets based on The contractual cash flow characteristics of the financial asset. The company’s business model for managing its financial assets. a. Neither 1 nor 2 b. 2 only c. Both 1 and 2 d. 1 only
Deposits held as compensating balances a. if legally restricted and held against long-term credit may be included among current assets b. if legally restricted and held against short term credit may be included as cash c. if not legally restricted and held against short-term credit should be included in the cash balance. d. if not legally restricted and held against short-term credit should be reported separately from cash but is included among the current assets.
Which of the following will be reflected in the "Cash flows from operating activities" of a Statement of Cash Flows? O A. Adjustment for depreciation O B. Purchase of equipment O C. Increase or decrease in loans O D. Purchase of inventory Previous page nttps://mancosaconnectacza/mad/ouiz/attempt.php?attempt=446654&cmid=D181433&page=18%3D Tume bere to search II

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS