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tigry1 [53]
3 years ago
14

Selected information from Large Corporation's accounting records and financial statements for 2013 is as follows ($ in millions)

: Cash paid to acquire a patent $48 Treasury stock purchased for cash 45 Proceeds from sale of land and buildings 75 Gain from the sale of land and buildings 46 Investment revenue received 15 Cash paid to acquire office equipment 70 Large prepares its financial statements in accordance with IFRS. In its statement of cash flows, Large most likely reports net cash outflows from investing activities of:
a. $28 million.

b.$48 million.

c.$118 million.

d.$58 million.
Business
1 answer:
lozanna [386]3 years ago
6 0

Answer:

In its statement of cash flows, Large most likely reports net cash outflows from investing activities of a. $28 million.

Explanation:

Open an extract of the section of the Cash flow Statement IAS 7 of IFRS and determine the Cash flow from Investing Activities.

Consider only cash flows that relate to purchase and sale of assets.Assets are economic resources controlled by the entity as a result of past events for which economic benefits are expected to flow into the entity.

                                                                             ($ in millions)

<u>Cash flow from Investing Activities</u>

Cash paid to acquire a patent                                    (48)

Proceeds from sale of land and buildings                  75

Cash paid to acquire office equipment                      (70)

Investment revenue received                                      15

Net cash outflows from investing activities               (28)

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Indicate the accounting concepts, principles, or constraints that underlie each of the following independent situations: account
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Answer:

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Going concern concept:

The concept is to have a view that the company is going to stay solvent in the future. That is we will have another accounting year in the future unless and otherwise we have evidence to the contrary.

Cost-benefit constraint:

It limits the amount of time to research the cost of an event if its benefits outweighs. In case of an immaterial event if its cost outweighs the benefits then that event can be forgone.

Expense recognition (matching principle):

The matching principle states that all the expenses are to be recorded based on the year they have been  incurred rather than on the time they are paid.

Materiality constraint:

It states that any event that changes or effects the decision making of the user of financial statement should be recorded and vice versa.

Revenue recognition principle:

It states that the revenue is to be recorded in the period in which it has been incurred instead when it is collected. Accrual basis gives a more clear picture of the performance of the company.

Full disclosure principle:

It requires to disclose any information to be mentioned in the foot notes of the financial statements of the company that might affect the user of financial statement. This helps in identifying the methods used for accounting practices and any event that might effect the organisations future existence.

Cost principle:

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7 0
3 years ago
The repair order is a legal document and must be signed or verbally agreed to by the customer.
zhenek [66]

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3 0
3 years ago
Values tend to vary across generations because they are influenced by events in childhood and youth. For example, some parents l
Greeley [361]

Answer:

False

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4 0
3 years ago
Havermill Co. establishes a $450 petty cash fund on September 1. On September 30, the fund is replenished. The accumulated recei
alexdok [17]

Answer:

Dr Petty cash $312

Cr Cash $312

Explanation:

Preparation of the journal entry to record the reimbursement of the fund on September 30

Since we were told that Havermill Co. establishes the amount of $450 as petty cash fund on September 1 in which the fund also had a balance of $138 which means the Amount required for reimbursement of the fund will be:

Amount required for reimbursement of the fund = The Beginning balance - The Remaining balance

Amount required for reimbursement of the fund = 450 - 138

Amount required for reimbursement of the fund = $312

Therefore the journal entry to record the reimbursement of the fund on September 30 will be :

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3 0
3 years ago
A company produces a single product. Variable production costs are $12.10 per unit and variable selling and administrative expen
rosijanka [135]

Answer:

Ending inventory cost= $5,445

Explanation:

Giving the following information:

Variable production costs are $12.10 per unit

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<u>Under the variable costing method, the unitary product cost is the sum of direct material, direct labor, and variable overhead. In this case is $12.1</u>

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3 years ago
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