Answer:
<em>C. Recording an item that should be recorded as an operating activity as an investing activity. </em>
Explanation:
<em>Hope it helped</em>
Answer:
net cash from investing activities = -$4,940
operating and financing activities are not affected.
Explanation:
the journal entries should be:
January 1, socks purchased
Dr Investment in Affiliate 5,000
<u>Cr Cash 5,000</u>
December 31, dividends received
<u>Dr Cash 60</u>
Cr Investment in Affiliate 60
December 31, Affiliate reports net income
Dr Investment in Affiliate 300
Cr Revenue from investing activities 300
Only the cash flow from investing activities will be affected by Parent's investing in Affiliate. Since the company uses the equity method, the operating and financing cash flows are not affected.
The cash flow from investing activities will:
- Decrease by $5,000 due to the purchase of stocks.
- Increase by $60 due to the dividends received.
- net cash from investing activities = -$4,940
Answer:
Attending
Explanation:
There are four steps in the risk negotiation cycle that includes attending, sensemaking, transforming and maintaining.
While assessing and analyzing the forms of communication and the workers orientations with respect to identify the sources reflects the attending phase whether the employees attend the orientations and according to that the analyzed could be done
Therefore this is an attending phase
Answer:
$73,600
Explanation:
Cash flow from Operating Activity
Cash sales $26,000
Collections on accounts receivable $99,000
Payments to suppliers ($47,000)
Cash generated from operations $78,000
Income taxes paid ($4,400)
Net cash provided by operating activities $73,600
therefore,
the amount of net cash provided by operating activities indicated by these transactions is $73,600
Answer:
$400,000
Explanation:
Since at December 31, Year 5, Tedd's tax advisor believed that an unfavorable outcome was <u>probable</u>. And a <u>reasonable estimate </u>of additional taxes was $400,000 but could be as much as $600,000.
Although after the Year 5 financial statements were issued, Tedd received and accepted an IRS settlement offer of $450,000.
Tedd should have included an amount of $400,000 as accrued liability in its December 31, Year 5 balance sheet
The reason is that according to the International Financial Reporting Standards, a PROVISION must be made as long as the conditions below were obtainable at year end.
- Existing Condition (which in this case is the tax dispute with the IRS)
- Probable Cash Outflow (which Tedd's Tax adviser confirmed)
- Reliable Estimate of Outflow ( which the scenario stated ''A reasonable estimate of additional taxes was $400,000'')
Hence, such 'reasonable estimate is the appropriate amount for inclusion in the financial statements.
