Question 2 During a reorganization, cash reserves tend to grow. How should interest earned on these reserves be reported on the financial statements? O As an unearned revenue until the reorganization is complete. O As a credit directly to retained earnings. O On the balance sheet as a long-term liability. On the income statement, but not classified as a reorganization item. O On the income statement as a reorganization item.

Question 2 During a reorganization, cash reserves tend to grow. How should interest earned on these reserves be reported on the financial statements? O As an unearned revenue until the reorganization is complete. O As a credit directly to retained earnings. O On the balance sheet as a long-term liability. On the income statement, but not classified as a reorganization item. O On the income statement as a reorganization item.

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter9: Working Capital

Section: Chapter Questions

Problem 12Q

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Please answer question IV, v, VI
An appropriation of Retained Earnings a. leaves total Retained Earnings unchangedb. means that cash has been set aside for a specific purposec. reduces the amount of Retained Earnings available for dividendsd. both leaves total Retained Earnings unchanged and reduces the amount of Retained Earnings available for dividends
6. Collecting of receivables and liquidation of assets concerns: Sources of funds; Uses of funds; Revenues: 7. Uses of funds are: Increase in a liability account and increase in an asset account; Payment of dividends and decrease in asset account; Increase in an asset account and payment of dividends; 8. New bank loan can be defined as: Source of funds; Uses of funds; Benefit; 9. Shareholders' equity is composed of: Earnings retained by the firm: Investments by the shareholders; A+B
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How is the valuation of cuIrent assets affected if the company follows IFRS? ( OValuation is based on historical cost. OValuation is based on market adjustments. OValuation is based on LCM accounting. O Assets are expensed immediately. Aliability created for receiving cash for future services to be provided is termed O service revenue. O estimated warranty payable. Ounearned revenue. Oaccrued liability.
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The Retained Earnings account: a. is a special fund for paying shareholders' dividends on the basis of income.b. has a credit balance if earnings have been greater than losses and dividends, and is reported as part of shareholders' equity on the statement of financial position.c. has a debit balance if losses have exceeded earnings, and is reported as part of assets on the statement of financial position.d. represents the amount of cash available for payment of dividends if there has been profitable operations.
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Question iv, v, vi. Please assist and show working