Question

31.According to AASB 107 Statement of Cash Flows, which of the following items ...

According to AASB 107 Statement of Cash Flows, which of the following items does not fall within the definition of cash?

Select one:

a. Bank notes and coins.

b. Accounts receivable.

c. Non-bank bills that are readily convertible to cash.

d. Deposits on the short-term money market with a term of less than 3 months.

[7:21 PM]

32.Which of the following items is classified as part of operating activities ...

Which of the following items is classified as part of ‘operating activities’ in the statement of cash flows?

Select one:

a. Proceeds from the sale of non-current assets.

b. Bad debts expense.

c. Depreciation of non-current assets.

d. Payments to suppliers for the purchase of goods.

[7:21 PM]

33.Investing activities are those relating to:

Investing activities are those relating to:

Select one:

a. changing the size or financial structure of an entity.

b. restructuring the working capital components of a business.

c. altering the composition of the debt of an organisation.

d. the acquisition or disposal of non-current assets.

[7:23 PM]

34.Which of following is classified as part of investing activities in the ...

Which of following is classified as part of ‘investing activities’ in the statement of cash flows?

Select one:

a. acquisition of non-current assets.

b. proceeds from an issue of shares.

c. gain on sale of investments.

d. depreciation of non-current assets.

[7:24 PM]

35.Financing activities on an entitys statement of cash flows are usually ...

Financing activities on an entity’s statement of cash flows are usually associated with:

Select one:

a. purchase of shares by the entity.

b. movements in non-current liabilities and equity.

c. sales of goods and services by the entity.

d. disposal of non-current assets.

[7:25 PM]

36. The basis of measurement used in the statement of cash flows is:

The basis of measurement used in the statement of cash flows is:

Select one:

a. current value.

b. accrual.

c. net present value.

d. cash and cash equivalents.

[7:26 PM]

37. For operating cash flows, the presentation method that separates gross cash ...

For operating cash flows, the presentation method that separates gross cash inflows from cash outflows is the:

Select one:

a. indirect method.

b. offset method.

c. direct method.

d. equity method.

[7:26 PM]

38. Which of the following items is required to be presented in a statement of ...

Which of the following items is required to be presented in a statement of cash flows?

Select one:

a. Depositing cash on hand in the bank account.

b. Proceeds from the issue of debentures.

c. Payment of dividends through a share investment scheme.

d. Acquisition of an investment in a subsidiary for consideration consisting of an exchange of non-current assets and liabilities

[7:26 PM]

39.Atkins investing

Atkins Limited had the following cash flows during the reporting period: consideration paid to acquire land $150,000; dividends paid $30,000; repayment of borrowings $60,000; interest paid on borrowings $24,000; and, proceeds from sale of plant $100,000.

The amount of the cash flows in relation to investing activities of Atkins Limited for the reporting period is:

Select one:

a. Net cash outflow $50,000

b. Net cash inflow $100,000

c. Net cash outflow $100,000

d. Net cash inflow $50,000

[7:26 PM]

40.Delilah Receipts

During the financial year Delilah Limited had sales of $284,000. The opening balance of accounts receivable was $36,000, and the closing balance was $45,000. Bad debts amounting to $2,600 were written off during the period. The cash receipts from sales during the year amounted to:

Select one:

a. $284,000

b. $275,000

c. $272,400

d. $281,400

[7:27 PM]

done... how is it going? 30 min left

[7:27 PM]

plz give me the answers whatever u have

Answer 1

31) According to AASB 107 cash comprises of cash in hand demand deposit. cash includes cash equivalentthey are short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

a) is cash

b) Not cash as its neither cash nor demand deposits

c)It can be readily convertible hence its cash equivalent

d)Its demand deposit and short term hence cash

Hence part b is not cash

32) Operating activities report on activities that create revenue or expense through reporting changes in current asset and current liability

a) its related to sale of non-current asset hence not generating revenue

b) though its a expense buut its adjusted in debtor as contra account

c) its a non cash item ,doesnt affect any thing

d) Payment to supplier for purhase of goods this will reduce accounts payable which is current liability hence it will be reported in operating activities

Correct option D

33) Investing activities reporting activities that generates or use cash for long term asset.

a. changing the size or financial structure of an entity.: It is not investing as its not related to long term asset

b. restructuring the working capital components of a business.: Working capital is the difference between current asset and current liability hence not related to long term asset

c. altering the composition of the debt of an organization. Debt is liability hence not long term asset

d. the acquisition or disposal of non-current assets.: Non current asset are long term asset hence they are reported in Investing activities.

Part D is correct

34) Investing activities reporting activities that generate or use cash for long term asset

a. acquisition of non-current assets.Non current assets are long term asset and purchase of said assets is recorded in investing activities

b. proceeds from an issue of shares.: they are related to financing activities

c. gain on sale of investments.:They are reported in operating activities as a deduction from net income

d. depreciation of non-current assets Its a non cash item

Part A is correct

35) Financing activities reports cash generated or used from changes in equity or long term liability

a. purchase of shares by the entity. This involves purchasing equity hence its reported in financing activity but long term liabilty is missing

b. movements in non-current liabilities and equity. This is correct as both equity and long term libility included

c. sales of goods and services by the entity. Its operating activity as its revenue generating

d. disposal of non-current assets. They reported in investing activities

Part B is correct

36) since its cash flow statement everything is reported on cash basis

a. current value.

b. accrual.

c. net present value.

d. cash and cash equivalents.

Part D is correct

37) There are two method for cash flow from operating activity one is DIRECT METHOD which reports operating cash flow in form of gross payments made to suppliers and gross cash received from customers.

Another method is INDIRECT METHOD its starts with net income and make the appropriate adjustment by reporting increase or decrease in current assets and current liabilities.

SO Gross inflow and outflow is used in DIRECT METHOD

a indirect method.

b. offset method.

c. direct method.

d. equity method.

Part C is correct

38)

Which of the following items is required to be presented in a statement of ...

Which of the following items is required to be presented in a statement of cash flows?

Select one:

a. Depositing cash on hand in the bank account.: Its a contra entry and is reflected in cash account not reported

b. Proceeds from the issue of debentures.Its a long term liability. so increase or decrease of long term liability and equity is reported in financing activity in cash flow

c. Payment of dividends through a share investment scheme.Its like mutual fund hence not reported

d. Acquisition of an investment in a subsidiary for consideration consisting of an exchange of non-current assets and liabilities: No cash used

Part B is correct

39.Atkins investing

Atkins Limited had the following cash flows during the reporting period: consideration paid to acquire land $150,000; dividends paid $30,000; repayment of borrowings $60,000; interest paid on borrowings $24,000; and, proceeds from sale of plant $100,000.

Cash flow from investing activities
land acquired	(150000)
dividends paid	financing activity
repayment of borrowing	Financing activity
Interest paid on borrowing	Operating activities
Proceeds from sale of plant	100000
Net cash used from investiing activities	(50000)

Select one:

a. Net cash outflow $50,000

b. Net cash inflow $100,000

c. Net cash outflow $100,000

d. Net cash inflow $50,000

40) cash proceeds = Sales - increase in accounts receivable - amount written off

284000-(45000-36000)-2600=272400

a. $284,000

b. $275,000

c. $272,400

d. $281,400

Part c is correct