Questions from General Accounting

Q: Compute the cash from operations in each of the following cases (

Compute the cash from operations in each of the following cases (A and B). All sales and purchases have been made on credit.

Q: Discuss the difference between profit or loss and comprehensive income.

Discuss the difference between profit or loss and comprehensive income.

Q: The cash flows below were extracted from the accounts of Martin Jones

The cash flows below were extracted from the accounts of Martin Jones, a music shop owner. Repayment of loan …………………………………………….. $420 000 Sale of property …………………………………………………… 390 000 Interest receive...

Q: Molly Winter Pty Ltd has the following items in its accounts.

Molly Winter Pty Ltd has the following items in its accounts. • Bank interest received. • Depreciation of delivery van. • Cash purchase of office equipment. • Sale of goods for cash. • GST payable. •...

Q: Smith and Jones Partnership provides specialist financial planning services to its clients

Smith and Jones Partnership provides specialist financial planning services to its clients. The following information relates to the year just ended. Required Using the direct method, prepare the ope...

Q: ‘We made a profit of $124 000, so why

‘We made a profit of $124 000, so why is there only $15 000 in the bank?’ exclaimed Mr Charlton, the owner of the local fish and chip shop. Explain to Mr Charlton the relationship between profit and c...

Q: On inspection of the financial statements, you note that sales are

On inspection of the financial statements, you note that sales are $67 500, and the beginning and closing accounts receivable balances are $49 500 and $63 000 respectively. What were the cash receipts...

Q: The sole trader of Rhode Store has approached you for a loan

The sole trader of Rhode Store has approached you for a loan. You note that the closing cash balances for the last two years were $15 920 and $18 650 respectively. Rhode Store also took out a loan of...

Q: Wattle Ltd has cash from operating activities of $57 246.

Wattle Ltd has cash from operating activities of $57 246. It has incurred capital expenditure of $47 350, of which $33 900 was for additional equipment. Calculate the entity’s free cash flow. Comment...

Q: Fresh Food Catering Ltd’s capital expenditure for the current year on new

Fresh Food Catering Ltd’s capital expenditure for the current year on new equipment was $196 900. Current liabilities and non-current liabilities were $98 590 and $732 800 respectively. Sales for the...