Statement of cash flows : This statement reports all the cash transactions which are responsible for inflow and outflow of cash, and result of these transactions is reported as ending balance of cash at the end of reported period. Income statement: Income statement is a financial statement that shows the net income or net loss by deducting the expenses from the revenues and vice versa. To Explain: The differences between cash flows from operating activities and the net income.

Question

Want to see the full answer?

Answer 1

Question

Chapter 21, Problem CCTC

a)

To determine

Statement of cash flows: This statement reports all the cash transactions which are responsible for inflow and outflow of cash, and result of these transactions is reported as ending balance of cash at the end of reported period.

Income statement: Income statement is a financial statement that shows the net income or net loss by deducting the expenses from the revenues and vice versa.

To Explain: The differences between cash flows from operating activities and the net income.

b)

To determine

To Explain: The accounting method followed by Company T, to record depreciation and amortization expense.

c)

To determine

To Explain: The difference in the accounting method if Company T, followed direct method instead of indirect method, to prepare the statement of cash flows.

d)

To determine

To Explain: The difference in the cash inflows and outflows from financing activities and investing activities for the two of the three years.

e)

To determine

To Explain: The transactions which do not impact the statement of cash flow of a company.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

please answer in text form and in proper format answer with must explanation , calculation for each part and steps clearly

The information below relates to questions 1- 11. Emily and Sibusisiwe are two sisters of the Nkoane family who have recently qualified as chartered accountants. The two sisters are in a partnership, trading as Nkoene and Associates, rendering audit and business advisory services. The partners share profits and losses in the ratio of 3:2. The following information was extracted from the accounting records of the partnership: Trial balance of Nkoane and Associates as at 30 June 2021, the end of the financial year: R Capital: Emily Capital: Sibusisiwe Current account: Emily (Dr) 324 000 216 000 5 000 Current account: Sibusisiwe (Cr) 15 000 Land and buildings at cost 450 000 Vehicles at cost 210 000 Furniture and fittings at cost 57 600 Accumulated depreciation: Vehicles Accumulated depreciation: Furniture and fittings 35 025 11 675 Stationery consumed 31 000 Trade receivables control 25 000 Trade payables control 13 000 Drawings: Emily Drawings: Sibusisiwe 36 500 29 000 Fuel and…

15. If an entity gives a product warranty that has been issued directly by a manufacturer, dealer or retailer, which IFRS is likely to cover this warranty? a. IAS 32 Financial instruments - Presentation b. IAS 37 Provisions, contingent liabilities and contingent assets c. IFRS 17 Insurance contracts d. IFRS 9 Financial instruments 16. IFRS 17 provides that insurance contracts should a. Be covered by IAS 32 and IFRS 9 b. Comply with all existing IFRS c. Generally continue to be subject to existing accounting policies. d. Comply with the IFRS Framework document. 17. An insurance contract can contain both deposit and insurance elements. An example might be a reinsurance contract where the cedant receives a repayment of the premiums at a future date if there are no claims under the contract. Effectively this constitutes a loan by the cedant that will be repaid in the future. IFRS 17 requires that a. Each payment by the cedant is accounted for as loan advance and as payment for insurance…

Answer 2

Question

Chapter 21, Problem CCTC

a)

To determine

Statement of cash flows: This statement reports all the cash transactions which are responsible for inflow and outflow of cash, and result of these transactions is reported as ending balance of cash at the end of reported period.

Income statement: Income statement is a financial statement that shows the net income or net loss by deducting the expenses from the revenues and vice versa.

To Explain: The differences between cash flows from operating activities and the net income.

b)

To determine

To Explain: The accounting method followed by Company T, to record depreciation and amortization expense.

c)

To determine

To Explain: The difference in the accounting method if Company T, followed direct method instead of indirect method, to prepare the statement of cash flows.

d)

To determine

To Explain: The difference in the cash inflows and outflows from financing activities and investing activities for the two of the three years.

e)

To determine

To Explain: The transactions which do not impact the statement of cash flow of a company.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 21, Problem CCTC

a)

To determine

Statement of cash flows: This statement reports all the cash transactions which are responsible for inflow and outflow of cash, and result of these transactions is reported as ending balance of cash at the end of reported period.

Income statement: Income statement is a financial statement that shows the net income or net loss by deducting the expenses from the revenues and vice versa.

To Explain: The differences between cash flows from operating activities and the net income.

b)

To determine

To Explain: The accounting method followed by Company T, to record depreciation and amortization expense.

c)

To determine

To Explain: The difference in the accounting method if Company T, followed direct method instead of indirect method, to prepare the statement of cash flows.

d)

To determine

To Explain: The difference in the cash inflows and outflows from financing activities and investing activities for the two of the three years.

e)

To determine

To Explain: The transactions which do not impact the statement of cash flow of a company.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 21, Problem CCTC

a)

To determine

Statement of cash flows: This statement reports all the cash transactions which are responsible for inflow and outflow of cash, and result of these transactions is reported as ending balance of cash at the end of reported period.

Income statement: Income statement is a financial statement that shows the net income or net loss by deducting the expenses from the revenues and vice versa.

To Explain: The differences between cash flows from operating activities and the net income.

b)

To determine

To Explain: The accounting method followed by Company T, to record depreciation and amortization expense.

c)

To determine

To Explain: The difference in the accounting method if Company T, followed direct method instead of indirect method, to prepare the statement of cash flows.

d)

To determine

To Explain: The difference in the cash inflows and outflows from financing activities and investing activities for the two of the three years.

e)

To determine

To Explain: The transactions which do not impact the statement of cash flow of a company.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 21, Problem CCTC

a)

To determine

Statement of cash flows: This statement reports all the cash transactions which are responsible for inflow and outflow of cash, and result of these transactions is reported as ending balance of cash at the end of reported period.

Income statement: Income statement is a financial statement that shows the net income or net loss by deducting the expenses from the revenues and vice versa.

To Explain: The differences between cash flows from operating activities and the net income.

b)

To determine

To Explain: The accounting method followed by Company T, to record depreciation and amortization expense.

c)

To determine

To Explain: The difference in the accounting method if Company T, followed direct method instead of indirect method, to prepare the statement of cash flows.

d)

To determine

To Explain: The difference in the cash inflows and outflows from financing activities and investing activities for the two of the three years.

e)

To determine

To Explain: The transactions which do not impact the statement of cash flow of a company.

Answer 6

Chapter 21, Problem CCTC

a)

To determine

Statement of cash flows: This statement reports all the cash transactions which are responsible for inflow and outflow of cash, and result of these transactions is reported as ending balance of cash at the end of reported period.

Income statement: Income statement is a financial statement that shows the net income or net loss by deducting the expenses from the revenues and vice versa.

To Explain: The differences between cash flows from operating activities and the net income.

Answer 7

Chapter 21, Problem CCTC

a)

To determine

Statement of cash flows: This statement reports all the cash transactions which are responsible for inflow and outflow of cash, and result of these transactions is reported as ending balance of cash at the end of reported period.

Income statement: Income statement is a financial statement that shows the net income or net loss by deducting the expenses from the revenues and vice versa.

To Explain: The differences between cash flows from operating activities and the net income.

Answer 8

b)

To determine

To Explain: The accounting method followed by Company T, to record depreciation and amortization expense.

Answer 9

b)

To determine

To Explain: The accounting method followed by Company T, to record depreciation and amortization expense.

Answer 10

c)

To determine

To Explain: The difference in the accounting method if Company T, followed direct method instead of indirect method, to prepare the statement of cash flows.

Answer 11

c)

To determine

To Explain: The difference in the accounting method if Company T, followed direct method instead of indirect method, to prepare the statement of cash flows.

Answer 12

d)

To determine

To Explain: The difference in the cash inflows and outflows from financing activities and investing activities for the two of the three years.

Answer 13

d)

To determine

To Explain: The difference in the cash inflows and outflows from financing activities and investing activities for the two of the three years.

Answer 14

e)

To determine

To Explain: The transactions which do not impact the statement of cash flow of a company.

Answer 15

e)

To determine

To Explain: The transactions which do not impact the statement of cash flow of a company.

Answer 16

Expert Solution & Answer

Answer 17

Expert Solution & Answer

Answer 18

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 19

Ch. 21 - Effects of all cash flows affect the balances of...Ch. 21 - Prob. 21.2Q Ch. 21 - Prob. 21.3Q Ch. 21 - Prob. 21.4Q Ch. 21 - Prob. 21.5Q Ch. 21 - Prob. 21.6Q Ch. 21 - Prob. 21.7Q Ch. 21 - The sale of stock and the sale of bonds are...Ch. 21 - Does the statement of cash flows report only...Ch. 21 - Prob. 21.10Q

Solution Summary: The author explains the difference between cash flows from operating activities and net income.

To Explain: The accounting method followed by Company T, to record depreciation and amortization expense.

To Explain: The difference in the accounting method if Company T, followed direct method instead of indirect method, to prepare the statement of cash flows.

To Explain: The difference in the cash inflows and outflows from financing activities and investing activities for the two of the three years.

To Explain: The transactions which do not impact the statement of cash flow of a company.

Want to see the full answer?

Chapter 21 Solutions