Questions from General Accounting

Q: An entity is converting its accrual-based accounting records to a

An entity is converting its accrual-based accounting records to a cash basis. The amount of $53 000 (including $7000 depreciation) was shown as ‘Other expenses’ in the statement of profit or loss. On...

Q: The following list contains activities that may be added or subtracted from

The following list contains activities that may be added or subtracted from operating profit when reconciling to cash flows from operating activities. Indicate whether each activity is added, subtract...

Q: Explain the three methods of depreciation.

Explain the three methods of depreciation.

Q: Tom and Clancy Partners reported a profit of $76 000 for

Tom and Clancy Partners reported a profit of $76 000 for the year. The statement of profit or loss also showed depreciation expense of $8000 and a loss on the sale of a motor vehicle of $2000. The sta...

Q: Design Homes Ltd had a $58 000 net loss for 2020

Design Homes Ltd had a $58 000 net loss for 2020. A dividend of $22 000 was paid during the year and depreciation expense was $15 000. Inspection of the statement of financial position shows the follo...

Q: The financial information below has been extracted from the accounts of Misty

The financial information below has been extracted from the accounts of Misty Wines Pty Ltd. Peta Stevens, the sole shareholder, wants to evaluate the cash position of her company and understands she...

Q: Outline how a creditor, an investor and an employee would each

Outline how a creditor, an investor and an employee would each interpret this statement of cash flows of Fruit Plantations Pty Ltd.

Q: Refer to the data on Fruit Plantations Pty Ltd in exercise 7

Refer to the data on Fruit Plantations Pty Ltd in exercise 7.33 and answer the following questions. In exercise 7.33 (a) Fruit Plantations Pty Ltd’s profit after income tax for the...

Q: Presented below is information for Sarah Waters, a sole trader,

Presented below is information for Sarah Waters, a sole trader, for the year ended 31 December 2020. Use the information to prepare a statement of cash flows. Cash balance, 31 December 2020 …………………………...

Q: Presented below is information for the Hudson Partnership for the year ended

Presented below is information for the Hudson Partnership for the year ended 31 December 2019. Use the information to prepare a statement of cash flows. Cash balance, 31 December 2019 ……………………………….. $...