Which of the following does not affect net working capital?   purchase of ordinary share capital purchase of inventory on account purchase of equipment on account repayment of long term debt

Q: Under IFRS, a company: a. should evaluate only equity investments for ­impairment. b. accounts for…

A: Option C is correct.

Q: The term capital structure refers to_______   O a. Long-term debt, preferred stock, and common…

A: Capital structure is an important term used in financial management of the company. The answer is…

Q: Appropriation for accumulated profits, if reflected in separate account, shall be shown as        a.…

A: Solution: Appropriation for accumulated profits, if reflected in separate account, shall be shown…

Q: Which accounting principle requires that interest expense, or any expense for operations during a…

A: Since there are multiple question asked, Answer will be given for first question only, to get all…

Q: Current assets that fluctuate with the firm’s operations are called Permanent Current Assets true…

A: Current assets are those type of assets which are either in cash or can be coverted into cash into…

Q: s not useful for analyzing changes in financial state s useful in analyzing relationships within a…

A: Vertical analysis of financial statements is a where each line item is expressed as a percentage…

Q: Is it true that the book value of a company equals the value or it's assets according to their…

A: Book value of the firm is the value of its liquidating i.e the total amount when its assets are sold…

Q: Under IFRS, the amount of capital received in excess of par value would be credited to: a.…

A:

Q: Profit on sale of fixed assets is [A] non trading income [B] operating income [C] non trading gains…

A:

Q: Unrealized holding gains and losses on debt securities classified as available for sale would have…

A: Other Comprehensive Income refers to items of income and expenses that are not recognized as a part…

Q: A firm's net investment is: a. its enterprise value in excess of debt owed. O b. the market value of…

A: Solution-Company's net investmentThe total amount invested on capital assets minus the price of…

Q: The assumption indicates that a company will not be sold or liquidated in the near future. а.…

A: The going concern assumption indicates that a company will not be sold or liquidated in the near…

Q: In applying the equity method of accounting for an Equity Investment, profit on intercompany sales…

A: Explanation: Equity method: The equity method is an accounting method that is to be used to record…

Q: Which one of the following is short-term source of working capital finance? Retained Profit…

A: Retained profit is a part of equity capital which stays in the business for long term. Factoring…

Q: An unrealized holding gain or loss on a company’s equity investment at fair value through other…

A: Solution: Unrealized holding gain or loss on a company’s equity investment is just the virtual…

Q: Sales revenue Cost of goods sold Selling and administrative expenses Gain on sale of plant assets…

A: Formula: Net income = Total revenues - Total expenses

Q: Interest revenue on bonds is reported as Group of answer choices an addition to the investment in…

A: Interest revenue on bonds is non operating revenue. So it is not operating income.

Q: What refers to the way the company’s assets are financed and includes both long-term as well as…

A: The company raises the finance from various sources, one of them is common stock. The investor who…

Q: 2. Which of the following best explains the meaning of the term 'capital expenditure'. Capital…

A: Capital expenditure is the long term expenditure of the company.

Q: Transaction costs are capitalized when acquiring investment in equity or debt securities, except…

A: Transaction costs are required costs incurred while sale or purchase of equity or debt security. In…

Q: An investment in equity instrument may not be classified as a financial asset subsequently measured…

A: Solution: An investment in equity instrument may not be classified as a financial asset subsequently…

Q: Regarding the trade-off theory, capital structure is a trade-off between: O tangible and intangible…

A: The capital structure refers to the mix of various available sources of capital which is used by a…

Q: gain from the sale or exchange of property which is not a capital asset

A: Second option is wrong because gross income is the income before allowing deductions. Third option…

Q: Which of the following is not an undistributable reserve?    A. Share premium account     B.…

A: Undistributable reserve means reserves which are not available for distribution to share holders.…

Q: A gain or loss from debt restructuring should be A.  treated as increase or decrease in Paid-in…

A: Earlier gain or loss from debt restructuring was transferred to capital reserve, but now gain or…

Q: Sham God Company provided the following information for the current year: Income from continuing…

A: Comprehensive income seems to be the overall alteration in capital or equity for a timeframe that…

Q: Funds needed for purchase inventory, pay short-term debt, and day-to-day operating expenses are…

A: Equity capital is the fund which is raised through equity or stock for long term investment.Option a…

Q: Capital Expenditures are Select one: O a. Expenses incurred when purchasing non-current assets O b.…

A: Capital Expenditure is recorded on the fixed assets side of the balance sheet. These assets can not…

Q: Under PAS 1, which of the followingitem is not included in the computation of profit?     Finance…

A: PAS 1 :           It is an accounting standard under Philippines Accounting Standards, the standard…

Q: Under what assumptions market value of a company does not depend on its capital structure

A: One important concept in Modigliani and Miller theorem that market value does not depends on the…

Q: Which of the following will be affected by an increase in the provision for doubtful debts? Gross…

A: The question is multiple choice question  Required  Choose the Correct Option.

Q: For fi nancial assets classifi ed as available for sale, how are unrealized gains and losses refl…

A: The unrealized gains and losses are realized as Uncomprehensive Income. It’s a line item which…

Q: The estimation of working capital usually refers to اخترأحد الخيارات a. Past requirement of working…

A: Positive working capital is desirable as it indicates company will not face any liquidity problems.

Q: 21.Which of the following best depicts the computation for the carrying amount of an investment in…

A: Investment in associates refers to the investment wherein the investor is not able to fully control…

Q: Indicate whether each item should be added to or subtracted from net income to arrive at the net…

A: Cash flows from operating activities: It is a section of Statement of cash flow that explains the…

Q: Net capital gain means the excess of the gains from sales of exchanges of ordinary assets over…

A: Capital gain can be defined as the increase in the value of the capital asset. When the selling…

Q: f depreciable equipment is sold at a gain, this transaction will appear the investing activities…

A: Equipment is a fixed asset, which helps in the regular working of the business. it a long term…

Q: Which of the following items affect equity without going through the income statement? Group of…

A: A) Purchase of treasury stock decreases equity and assets and not dealt in income statement. B)…

Q: Which of the following results in an increase in the Equity in the Investee Income acct. when…

A: Equity of the investor means the amount that is invested by the investor in the company. Equity…

Q: Under the capital maintenance concept, which of the following items should be deducted from the…

A: Capital maintenance is an accounting concept based on the principle that a company's income should…

Q: Assume an income statement with the following classifications: a. Revenues b. Cost of goods sold c.…

A: Step 1 An income statement is a financial statement that depicts profitability of business over a…

Q: Which of the following statements about "avoidable interest" is false? it is computed only on…

A: The avoidable interest measn the cost that is incurred to construct the long-term assets. It is also…

Q: Which of the following items would be presented in a cash flow statement? Group of answer choices…

A: Statement of cash flows: It is a financial statement that shows the increase or decrease in the cash…

Q: Comprehensive income consists of O operating income + other income and losses net income + other…

A: please like the answer your response matters  comprehensive income consists of other comprehensive…

Q: Which of the following is classified as non-current assets in the Statement of Financial Position?…

A: Introduction: Statement of Financial Position: All Assets and liabilities are shown in Statement of…

Q: For fi nancial assets classifi ed as available for sale, how are unrealized gains and losses refl…

A: All assets purchased with an intention of sale and not for the purpose of operational utility are…

Q: Choose the correct. The cost of debt capital is calculated on the basis of:  A. Net proceeds…

A: Cost of debt: It is that the average rate of interest an organization spends on its debts. It is the…

Q: 6. When computing the amount of interest cost to be capitalized, the concept of "avoidable interest"…

A: Capitalized interest represents the interest cost incurred to finance the construction of a…

Q: 2. Which of the following correctly matches the classification of the debt investment with its…

A: IAS 32 and IAS 39, the previous IFRS financial instruments accounting standards, classified debt…

Balance of Payments

BOP is categorized into the following three components: