Loose Leaf for Fundamentals of Accounting Principles and Connect Access Card
Loose Leaf for Fundamentals of Accounting Principles and Connect Access Card
22nd Edition
ISBN: 9781259542169
Author: John J Wild
Publisher: McGraw-Hill Education
Question
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Chapter 16, Problem 10E
To determine

Concept Introduction:

Cash Flow from Operating Activities:

Cash flow from operating activities includes the inflow from principal revenue generating activities of enterprise. In other words inflow from activities that are not financing and investing activities.

Total Assets:

Total Assets includes the Non-Current Assets and Current Assets of an enterprises.

Average Total Assets:

Average total assets can be calculated by using the formula mentioned below

  (Opening Total Assets + Closing Total Assets)2

Current Assets:

Current Assets are the assets that are either in the form of Cash & Cash Equivalents or can be converted into Cash or Cash Equivalent within a short period of time i.e. 12 months.

Non-Current Assets:

Non-Current Assets are those assets which are not current assets. It includes Fixed Assets (Tangible and intangible), Long term Investments, Long term loans and advances and other non-current assets.

Cash Flow on Total Assets Ratio:

It is an efficiency ratio used to calculate the efficiency of Assets to generate cash flows.

To Calculate:

The Cash Flow to Total Assets Ratio of Company for Fiscal Year 2015 and 2014

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General Accounting Question give true answer
A company performed $25,905 of services and received $9,000 in cash with the remaining amount to be paid in 60 days with no interest. What would the effect of this transaction be on the company's current month- end accounting equation? A. $25,905 increase in Assets; No effect on Liabilities; $25,905 increase in Stockholders' Equity. B. $16,905 increase in Assets; No effect on Liabilities; $16,905 increase in Stockholders' Equity. C. $25,905 increase in Assets; $25,905 increase in Liabilities; No effect on Stockholders' Equity. D. $9,000 increase in Assets; $16,905 decrease in Liabilities; $25,905 increase in Stockholders' Equity.

Chapter 16 Solutions

Loose Leaf for Fundamentals of Accounting Principles and Connect Access Card

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