Exam 5: Statement of Financial Position and Statement of Cash Flows

The equity section of an IFRS statement of financial position includes share capital, share premium, and retained earnings in that order.

Caroline, Inc.hired a new controller in late 2011.The controller has not prepared financial statements using IFRS before and needs your assistance.In compiling a complete set of financial statements under IFRS, in what order should the following items be reported in the equity section on the statement of financial position at December 31, 2011? If an item is not reported in the equity section, omit it from your answer. I.Share premium II.Retained earnings III.Investments IV.Non-controlling interest V.Accumulated comprehensive income VI.Share capital

Packard Corporation reports the following information: Packard's cash debt coverage ratio is

A measure of a company's financial flexibility is the

Companies may use parenthetical explanations, notes, cross references, and supporting schedules to disclose pertinent information.

Caroline, Inc.exchanged a tract of land it held in Mississippi for a tract of land owned by Rosalie Corporation located in Illinois.How is this transaction reported on Caroline, Inc.'s statement of cash flows?

Under IFRS the payment of dividends may be reported as either an investing activity or a financing activity.

In preparing a statement of cash flows, cash flows from operating activities

For Grimmett Company, the following information is available: In Grimmett's statement of financial position, intangible assets should be reported at

The basis for classifying assets as current or noncurrent is the period of time normally required by the accounting entity to convert cash invested in

Keisler Corporation reports: What is Keisler's ending cash balance?

On the statement of financial position the non-controlling interest account is reported as a long-term investment.

Which of the following facts concerning fixed assets should be included in the Summary of Significant Accounting Policies?

Sauder Corporation reports the following information: Sauder should report cash provided by operating activities of

Financial flexibility is a company's ability to respond and adapt to financial adversity and unexpected needs and opportunities.

Houghton Company has the following items: share capital-ordinary, $720,000; treasury shares, $85,000; deferred taxes, $100,000 and retained earnings, $313,000.What total amount should Houghton Company report as shareholders' equity?

The accounting profession has recommended that companies use the word reserve only to describe amounts deducted from assets.

Making and collecting loans and disposing of property, plant, and equipment are

Non-current liabilities include

On the statement of cash flows, which of the following items will affect both financing activities and operating activities?