The investment activities section of the statement of cash flows includes increases and decreases in long-term assets.
Long-term assets are investment based activities which included equipment used in a business and the building thats built for a business to run in. If you were to sell your long-term assets and make a profit, this would also but included in the investment activities section of the state of cash flows.
Answer: standards are based on the ultimate goals of a business
Explanation:
- Standards set specialized goals
- Examples
-Financial standards
* Set goals for profit, cash flow and sale
-Quality control standards
*Set up production line check for defects in machinery or workmanship
Answer:
$94,000
Explanation:
Henry Jones contributed a cash of $53,300 to the partnership
The equipment had a book value of $25,500 and a market value of $32,900
The inventory had a book value of $51,900 and a market value of $16,000
The partnership assumed a note payable of $14,500 that was owed by Henry
Therefore, the amount that should be recorded in Henry's capital can be calculated as follows
= $53,300+$39,200+$16,000-$14,500
= $108,500-$14,500
= $94,000
Hence $94,000 should be recorded in Henry's capital account
Answer:
Indenture; convertibility provision
Explanation:
Indenture refers to a legal contract that bounds the bondholder and the issuer. This contract specifies important features of the bond like its type (convertible or callable), maturity date, interest payment time and rate. In other words, it includes all the terms and conditions related to the issue of bond.
One of the types of bonds is convertible bonds. Due to the provision of convertibility, these bonds can be converted to a stipulated number of common shares that are decided in advance.
