Exam 6: Statements of Financial Position and Cash Flows and the Annual Report

Accumulated other comprehensive income appears on an entity's income statement.

IFRS specifies that biological assets should be reported on the balance sheet.

Which of the following is a current asset?

Which of the following is considered an investing activity when preparing the statement of cash flows?

Which of the following is a not a component of shareholders' equity?

When preparing the operating section of the statement of cash flows using the indirect method, which of the following items are subtracted from net income?

Which of the following is not a limitation of the balance sheet?

Presented below are selected accounts for San Marcos Corporation for December 31 of the current year. What is ending retained earnings for San Marcos Corporation?

Teague Industries Presented below is selected financial data for Teague Industries for the current year: Current assets: Current liabilities Cash and cash equivalents \ 3,513 Accounts payable \ 5,365 Short-term investments 1,565 Other current liabilities 2,882 Receivables, net 1,861 Total current liabilities 8,247 Merchandise inventories 6,185 Noncurrent liabilities 5,156 Other current assets 1,925 Shareholders' Equity 6,230 Total current assets 15,049 Total liabilities and shareholders' equity \ 19,633 Noncurrent assets 4,584 Total assets \ 19,633 Revenues \ 50,826 Costs and Expenses 45,963 Operating Income 4,863 Other income/expense (including interest expense of \ 50 ) (26) Income before income tax 4,837 Income tax expense (1,439) Net income \ 3,398 Previous Years' Financial Data Total Assets \ 17,120 Shareholders' Equity 3,990 Working capital for Teague Industries is ________.

There is an inverse relationship between a company's solvency level and risk of default.

Glover Corporation's trial balance for December 31, the end of its fiscal year, included the following accounts: Accounts Payable \ 40,000 Dividends Payable 22,000 Bond Payable, maturing in 9 years 36,000 Salaries Payable 9,000 Note Payable, due in 1 year 30,000 Note payable, due in 5 years 60,000 The amount that should be classified as current liabilities on Glover's December 31 balance sheet is ________.

Prepaid expenses are normally reported as current assets.

Baton Rouge Corporation Presented here are cash flows (in $ Millions) for Baton Rouge Corporation's most recent fiscal year: Customers \3 ,600 Interest on investments 700 Sale of old equipment 4,100 Sale of company's capital stock 490 Long-term debt proceeds 2,200 Interest on debt \ 395 Income tax 210 Principal payments on debt 1,400 Purchase of building 1,100 Purchase of inventory 1,400 Dividends on capital stock 350 Operating expenses 770 Net cash flows from operating activities (direct method) are ________.

When using the direct method, losses on the sale of long-term assets are added to net income in the operating activities section.

Complete the U.S. GAAP and IFRS columns in the table below by identifying the cash flow activity on the statement of cash flows: Operating, Investing, or Financing. If a standard allows for more than one activity classification be sure to note both. For example, if an activity can be classified as "Operating or Financing," please note both classifications. Activities U.S. GAAP IFRS Cash receipts from interest Cash payments for interest Cash receipts from dividends Cash payments for dividends to owners

Which of the following is classified as a financing activity on a statement of cash flows?

The account format of the balance sheet lists assets on the left side and liabilities and stockholders' equity on the right side of the statement.

When using the indirect method to report cash flows from operating activities, depreciation expense is subtracted from net income to arrive at net cash provided by operating activities.

A body that oversees the activities of the company is known as ________.

Presented below are selected accounts for San Marcos Corporation for December 31 of the current year. What are long-term liabilities for San Marcos Corporation?