Question 1

Cash flows resulting from foreign currency transactions are translated at the exchange rates applicable at the balance sheet date.

Accepted Answer

A) True 
 B)False  False

Question 2

The time to maturity is relevant in the classification of cash equivalents.

Accepted Answer

A) True 
 B)False  True

Question 3

Cash payments to buy back shares will be classified as:

Accepted Answer

A)  cash flow from operating activities. 
B)  cash flow from investing activities. 
C)  cash flow from financing activities. 
D)  none of the above. 
A)  cash flow from operating activities. 
B)  cash flow from investing activities. 
C)  cash flow from financing activities. 
D)  none of the above. C

Question 4

A Ltd acquires 100% of shares of B Ltd for $195 000,financed by an issue of 100 000 x $1.50 shares and $45 000 cash.B Ltd has cash balances of $35 000 at the date of acquisition.Which amount will A Ltd record for cash flow from investing in its consolidated statement of cash flows?

Accepted Answer

A)  ($195 000) 
B)  ($450 000) 
C)  ($10 000) 
D)  ($35 000) 
A)  ($195 000) 
B)  ($450 000) 
C)  ($10 000) 
D)  ($35 000)

Question 5

The purpose of holding a cash equivalent is irrelevant for the classification in the statement of cash flows.

Accepted Answer

A) True 
 B)False

Question 6

Cash flows from operating activities can be calculated using:

Accepted Answer

A)  the direct method. 
B)  the indirect method. 
C)  either the direct or indirect method. 
D)  none of the above. 
A)  the direct method. 
B)  the indirect method. 
C)  either the direct or indirect method. 
D)  none of the above.

Question 7

The classification of an item as a cash equivalent means that changes in the balance:

Accepted Answer

A)  will be disclosed in the statement of cash flows. 
B)  will not be disclosed in the statement of cash flows. 
C)  may be disclosed at discretion of the entity. 
D)  none of the above. 
A)  will be disclosed in the statement of cash flows. 
B)  will not be disclosed in the statement of cash flows. 
C)  may be disclosed at discretion of the entity. 
D)  none of the above.

Question 8

A company has total sales revenue of $600 000 for a period.The balance of accounts receivable was $200 000 at the start of the year and $220 000 at the end of the year.Cash sales amounted to $50 000.Receipts from customers is:

Accepted Answer

A)  $600 000. 
B)  $530 000. 
C)  $550 000. 
D)  $580 000. 
A)  $600 000. 
B)  $530 000. 
C)  $550 000. 
D)  $580 000.

Question 9

A company records a net profit of $220 for the year.Other information for the year: Depreciation expense $40
Increase in accounts receivable $60
Decrease in accounts payable $30
Cash flow from operating activities is:

Accepted Answer

A)  $260. 
B)  $330. 
C)  $270. 
D)  $170. 
A)  $260. 
B)  $330. 
C)  $270. 
D)  $170.

Question 10

Discuss the basis of classifying cash flows arising from interest paid.

Accepted Answer

Interest paid:
- AASB107 provides guidan

Question 11

Discuss the treatment of subsidiaries acquired and disposed of in the consolidated statement of cash flows.

Accepted Answer

Treatment of subsidiaries acquired and d

Question 12

Accounting Standard AASB 107 Statement of Cash Flows mandates the provision of cash flow information from operating,financing and investing activities.

Accepted Answer

A) True 
 B)False

Question 13

The issue of shares to purchase non-current assets will be disclosed:

Accepted Answer

A)  as a financing activity. 
B)  as an investment activity. 
C)  as both a financing and investment activity. 
D)  in the note disclosure to the statement of cash flows. 
A)  as a financing activity. 
B)  as an investment activity. 
C)  as both a financing and investment activity. 
D)  in the note disclosure to the statement of cash flows.

Question 14

Discuss why Australia moved from a requirement to prepare a statement of sources and application of funds to a statement of cash flows.

Accepted Answer

Move from sources and applications of fu

Question 15

The carrying amount of property,plant and equipment is $1000 at the start of the year and $1400 at the end of the year.During the year,the following occurred: Sale of equipment-carrying amount $40
Acquisition of equipment-financed by share issue $200
Depreciation expense for year-$120
Investing cash flow is:

Accepted Answer

A)  ($400). 
B)  ($200). 
C)  ($160). 
D)  ($360). 
A)  ($400). 
B)  ($200). 
C)  ($160). 
D)  ($360).

Question 16

A company calculates its cash flows from operating activities as profit +/- accruals.This is:

Accepted Answer

A)  the direct method. 
B)  the indirect method. 
C)  neither the direct or the indirect method. 
D)  none of the above. 
A)  the direct method. 
B)  the indirect method. 
C)  neither the direct or the indirect method. 
D)  none of the above.

Question 17

Insurance proceeds from the destruction of a factory by fire would be classified as:

Accepted Answer

A)  operating cash flow. 
B)  financing cash flow. 
C)  investing cash flow. 
D)  none of the above. 
A)  operating cash flow. 
B)  financing cash flow. 
C)  investing cash flow. 
D)  none of the above.

Question 18

A statement of cash flows can be prepared using:

Accepted Answer

A)  the reconstruction of ledgers approach. 
B)  the formula approach. 
C)  the spreadsheet approach. 
D)  all of the above. 
A)  the reconstruction of ledgers approach. 
B)  the formula approach. 
C)  the spreadsheet approach. 
D)  all of the above.

Question 19

AASB 107 requires the use of the direct method of calculating cash flows from operating activities.

Accepted Answer

A) True 
 B)False

Question 20

A company holds $100 000 in a term deposit account as an interest-generating investment.For purposes of the statement of cash flows,the term deposit will be classified as:

Accepted Answer

A)  a cash equivalent. 
B)  an investment. 
C)  either a cash equivalent or an investment. 
D)  none of the above. 
A)  a cash equivalent. 
B)  an investment. 
C)  either a cash equivalent or an investment. 
D)  none of the above.

Cash flows resulting from foreign currency transactions are translated at the exchange rates applicable at the balance sheet date.

The time to maturity is relevant in the classification of cash equivalents.

Cash payments to buy back shares will be classified as:

A Ltd acquires 100% of shares of B Ltd for $195 000,financed by an issue of 100 000 x $1.50 shares and $45 000 cash.B Ltd has cash balances of $35 000 at the date of acquisition.Which amount will A Ltd record for cash flow from investing in its consolidated statement of cash flows?

The purpose of holding a cash equivalent is irrelevant for the classification in the statement of cash flows.

Cash flows from operating activities can be calculated using:

The classification of an item as a cash equivalent means that changes in the balance:

A company has total sales revenue of $600 000 for a period.The balance of accounts receivable was $200 000 at the start of the year and $220 000 at the end of the year.Cash sales amounted to $50 000.Receipts from customers is:

A company records a net profit of $220 for the year.Other information for the year: Depreciation expense $40 Increase in accounts receivable $60 Decrease in accounts payable $30 Cash flow from operating activities is:

Discuss the basis of classifying cash flows arising from interest paid.

Discuss the treatment of subsidiaries acquired and disposed of in the consolidated statement of cash flows.

Accounting Standard AASB 107 Statement of Cash Flows mandates the provision of cash flow information from operating,financing and investing activities.

The issue of shares to purchase non-current assets will be disclosed:

Discuss why Australia moved from a requirement to prepare a statement of sources and application of funds to a statement of cash flows.

A company calculates its cash flows from operating activities as profit +/- accruals.This is:

Insurance proceeds from the destruction of a factory by fire would be classified as:

A statement of cash flows can be prepared using:

AASB 107 requires the use of the direct method of calculating cash flows from operating activities.

A company holds $100 000 in a term deposit account as an interest-generating investment.For purposes of the statement of cash flows,the term deposit will be classified as:

Text Objectives and Introduction to Consolidation

Principles of Consolidation

Fair Value Adjustments and Tax Effects

Intra-Group Transactions

Non-Controlling Interest

Partly-Owned Subsidiaries: Indirect Non-Controlling Interest

Accounting for Joint Arrangements

Accounting for Associates and Joint Ventures: the Equity Method

Translation and Consolidation of Foreign Currency Financial Statements

Segment Reporting by Diversified Entities

Filters

Exam 7: Consolidated Cash Flow Statements

Cash flows resulting from foreign currency transactions are translated at the exchange rates applicable at the balance sheet date.

The time to maturity is relevant in the classification of cash equivalents.

Cash payments to buy back shares will be classified as:

A Ltd acquires 100% of shares of B Ltd for $195 000,financed by an issue of 100 000 x $1.50 shares and $45 000 cash.B Ltd has cash balances of $35 000 at the date of acquisition.Which amount will A Ltd record for cash flow from investing in its consolidated statement of cash flows?

The purpose of holding a cash equivalent is irrelevant for the classification in the statement of cash flows.

Cash flows from operating activities can be calculated using:

The classification of an item as a cash equivalent means that changes in the balance:

A company has total sales revenue of $600 000 for a period.The balance of accounts receivable was $200 000 at the start of the year and $220 000 at the end of the year.Cash sales amounted to $50 000.Receipts from customers is:

A company records a net profit of $220 for the year.Other information for the year: Depreciation expense $40 Increase in accounts receivable $60 Decrease in accounts payable $30 Cash flow from operating activities is:

Discuss the basis of classifying cash flows arising from interest paid.

Discuss the treatment of subsidiaries acquired and disposed of in the consolidated statement of cash flows.

Accounting Standard AASB 107 Statement of Cash Flows mandates the provision of cash flow information from operating,financing and investing activities.

The issue of shares to purchase non-current assets will be disclosed:

Discuss why Australia moved from a requirement to prepare a statement of sources and application of funds to a statement of cash flows.

A company calculates its cash flows from operating activities as profit +/- accruals.This is:

Insurance proceeds from the destruction of a factory by fire would be classified as:

A statement of cash flows can be prepared using:

AASB 107 requires the use of the direct method of calculating cash flows from operating activities.

A company holds $100 000 in a term deposit account as an interest-generating investment.For purposes of the statement of cash flows,the term deposit will be classified as:

Text Objectives and Introduction to Consolidation

Principles of Consolidation

Fair Value Adjustments and Tax Effects

Intra-Group Transactions

Non-Controlling Interest

Partly-Owned Subsidiaries: Indirect Non-Controlling Interest

Accounting for Joint Arrangements

Accounting for Associates and Joint Ventures: the Equity Method

Translation and Consolidation of Foreign Currency Financial Statements

Segment Reporting by Diversified Entities

Filters