On account of monetary undertakings, the income coming about because of interest and profit gotten and premium paid ought to be named income from a) Operating exercises b) Financing exercises c) Investing exercises d) None of the above mentioned
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On account of monetary undertakings, the income coming about because of interest and profit
gotten and premium paid ought to be named income from
a) Operating exercises
b) Financing exercises
c) Investing exercises
d) None of the above mentioned
Step by step
Solved in 2 steps
- Which statement is incorrect? a. Under the transactions approach, net income is computed as the excess of income over expenses b. Under the capital maintenance approach, net income is computed as the excess of ending capital over beginning capital, excluding the effect of investments and withdrawals by owners. c. Unusual and infrequent items of expenses should be presented in in the income statement as a component of income from continuing operation. d. The single statement of comprehensive income shows a detailed presentation of all income and expenses, regardless of whether these income and expenses are recognized or not in the profit or loss. e. None of the above Statement 1: In the statement of changes in equity, the effect of the correction of a prior period error is presented separately for each component of equity. Statement 2: Preference share dividend appear under the retained earnings section of the statement of changes in equity. a. True, True b. False,…Which statement is incorrect? * Under the transactions approach, net income is computed as the excess of income over expenses Under the capital maintenance approach, net income is computed as the excess of ending capital over beginning capital, excluding the effect of investments and withdrawals by owners. Unusual and infrequent items of expenses should be presented in in the income statement as a component of income from continuing operation. The single statement of comprehensive income shows a detailed presentation of all income and expenses, regardless of whether these income and expenses are recognized or not in the profit or loss. None of the aboveWhich of the following is NOT correct regarding the rate of return on assets? a. The rate of return on assets measures management’s ability to productively employ all its resources. b. The rate of return on assets measures the return on all assets used regardless of how the assets are financed. c. The rate of return on assets is a measure of profitability. d. The rate of return on assets measures the return on the investment made by the owners of the entity. is B the correct answer?
- Which of the following best represents operating income? Seleccione una: a. Income after financing activities b. Earnings before interest and taxes c. Income from discontinued operations d. Income from capital gainsWhich of the following returns is consistent with contractual cash flows that are SPPI? Return for passage of time. Return for the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. Return for the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset. Return for amounts to cover expenses and a profit margin. Group of answer choices I, II and III only I and IV only I, II, III and IV II and III onlyChanges to net working capital are categorized as: a. cash flow from operating activities. b. cash flow from investment activities. c. cash flow from financing activities. d. none of these 2. The repayment of debt is: a. an operating activity b. an investing activity no matter how the money from the loan was allocated. c. a financing activity d. an investing activity assuming the debt was used for the purchase of a fixed asset
- Out of which equation is NOT CORRECT ? Please remember to select "WHICH IS NOT CORRECT" Select one: a. Capital = Total Assets - Total Liabilities b. Total Assets = Tangible Assets + Intangible Assets + Investments + Current Assets c. Total Liabilities = Total Assets - Shareholder's funds - Capital d. Owner's equity = Share capital + Reserve and Surplus1. Which statement is incorrect? Under the transactions approach, net income is computed as the excess of income over expenses Under the capital maintenance approach, net income is computed as the excess of ending capital over beginning capital, excluding the effect of investments and withdrawals by owners. Unusual and infrequent items of expenses should be presented in in the income statement as a component of income from continuing operation. The single statement of comprehensive income shows a detailed presentation of all income and expenses, regardless of whether these income and expenses are recognized or not in the profit or loss. None of the above 2. S1: In the statement of changes in equity, the effect of the correction of a prior period error is presented separately for each component of equity. S2: Preference share dividend appear under the retained earnings section of the statement of changes in equity. True, True False, False True, False False True 3. The…assets that are purchased for use in operations but are not intended to be resold are called a. fixed assets b. income statement c. marketing costs d. proper cash flow
- Which of the following is NOT TRUE about the basic and additional financial statements a) Revenues and expenses to generate these revenues plus other revenues and prepaid expenses are presented on the Income Statementb) They are all prepared according to the accrual basis of accounting except the statement of cashflowsc) Statement of financial position is another name for the balance sheetd) Assets are presented on the asset side of the statement of financial position; whereas the financial sources of assets are presented on the liabilities & equity sideChoose when the profit is earned as a result of financial capital maintenance from the options below. a. Opening Fixed Assets > Opening Liabilities b. Closing Assets >Closing Liabilities c. Closing Net Assets >; Opening Net Asset d. Closing Assets > Current Liabilities1. Which of the following would be classified as a cash outflow for investing activities? payment of accounts payable cash paid for acquisition of property, plant, and equipment sale of available-for-sale securities payment of dividends 2. Paying the salaries of employees would be classified as an operating activity. an investing activity. a financing activity. a noncash investing and financing activity. 3. The payment of dividends would be classified as an operating activity. an investing activity. a financing activity. a noncash investing and financing activity. 1. The indirect method of presenting cash flows from operating activities begins with a listing of the inflows of cash from operating activities. a listing of the outflows of cash for operating activities. the balance in the Cash account. net income. 2. The direct method of presenting cash flows from operating activities begins with a listing of the inflows of cash from operating activities. a listing of the…
