Financial Assertions, Cash Flow, and Taxes

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08.08.2019-119 views -Monetary Statements, Money

 Financial Assertions, Cash Flow, and Taxes Composition

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PART 2

ECONOMIC STATEMENTS, CASH FLOW, AND INCOME TAXES

True/False

Easy:

| (2. 1) Gross annual reportF K| Answer: a| EASY

. | The total annual report contains four fundamental financial transactions: the income statement, balance sheet, statement of cash flows, and statement of stockholders' collateral. | | | | | | | | |

| a. | True| | | | | |

| b. | False| | | | | |

| | | | | | | |

| (2. 1) Twelve-monthly report and expectationsF K| Answer: a| EASY|. | The primary explanation the gross annual report is very important in financing is that it truly is used by investors when they type expectations regarding the business's future income and payouts, and the riskiness of those cash flows. | | | | | | | | |

| a. | True| | | | | |

| b. | False| | | | | |

| | | | | | | |

| (2. 2) Retained earnings versus cashC K| Answer: b| EASY|. | Consider the balance piece of Wilkes Industries as shown below. Because Wilkes has hundreds of dollars, 000 of retained profits, the company could pay cash to buy a property with a cost of $200, 1000. | | | | | | | | |

| Cash| $ 50, 000| | Accounts payable| | $ 95, 000| | Inventory| two hundred, 000| | Accruals| | 100, 000

| Accounts receivable| 250, 000| | Total CL| | $ 200, 000| | Total CA| $ 500, 000| | Debt| | 200, 000

| Net set assets| bucks 900, 000| | Common stock| | 200, 000| | | В В В В В В В В В В | | Retained earnings| | 800, 000| | Total assets| $1, four hundred, 000| | Total T & E| | $1, 400, 000| | | | | | | |

| a. | True| | | | | |

| w. | False| | | | | |

| | | | | | | |

| (2. 2) Balance sheetF K| Solution: a| CONVENIENT

. | For the balance sheet, total assets should always equal total liabilities and equity. | | | | | | | | |

| a. | True| | | | | |

| b. | False| | | | | |

| | | | | | | |

| (2. 2) Balance sheet: noncash assetsF K| Answer: a| EASY|. | Assets apart from cash are required to produce cash over time, but the amount of cash they eventually produce could be bigger or lower than the values at which these assets will be carried on the books. | | | | | | | | |

| a. | True| | | | | |

| b. | False| | | | | |

| | | | | | | |

| (2. 3) Cash flow statementF K | Answer: a| EASY

. | The cash flow statement reveals the difference among a firm's income as well as its costs--i. e., its profits--during a specified time period. However , only some reported cash flow comes in the proper execution or money, and reported costs similarly may not appropriately reflect cash outlays. Therefore , there may be a substantial difference between a business reported earnings and its actual cash flow for the similar period. | | | | | | | | |

| a. | True| | | | | |

| b. | False| | | | | |

| | | | | | | |

| (2. 7) Net working working capitalF K| Response: a| EASY|. | Net operating seed money is corresponding to operating current assets minus operating current liabilities. | | | | | | | | |

| a. | True| | | | | |

| b. | False| | | | | |

| | | | | | | |

| (2. 7) Total net operating capitalF K| Answer: b | EASY|. | Total net working capital is definitely equal to net fixed property. | | | | | | | | |

| a. | True| | | | | |

| m. | False| | | | | |

| | | | | | | |

| (2. 7) Net operating earnings after taxation (NOPAT)F K| Answer: a | EASY|. | Net operating profit after fees (NOPAT) may be the amount of net income an organization would make from its businesses if it experienced no curiosity income or perhaps interest price. | | | | | | | | |

| a. | True| | | | | |

| b. | False| | | | | |

| | | | | | | |

| (2. 9)...

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