Under US GAAP, the cash flows that should be included in the Investing Section of the Statement of Cash Flows are purchases of physical assets, investments in securities, or the sale of securities or assets.
This implies that US GAAP does not allow interest paid or received and dividends received to be classified under the Investing Section, unlike IFRS that gives entities the flexibility to classify the above items as either investing or financing activities.
Instead, the US GAAP requires that the above items are classified as operating cash flows.
Thus, the only cash flows that are included in the Investing Section of the statement of cash flows under US GAAP are cash flows (inflows and outflows) related to long-term physical assets and investments.
Learn more about the Investing Section of the statement of cash flows under US GAAP here: brainly.com/question/18568838
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Answer:
D
Explanation:
Management is responsible for establishing and maintaining internal control to achieve the objectives of effective and efficient operations, reliable financial reporting, and compliance with applicable laws and regulations.
Answer:
They should conduct a market research, since probably they are targeting the wrong market segment.
Explanation:
A market research, if done correctly, should allow them to gather information about who are their potential customers (target market) and what do they need or want.
Answer: Vent should record $70,000
Explanation:
The requirement is to determine the amount of discount on the debentures that Vent should record at issuance.
ASC Topic 470 states that the proceeds from the issuance of debt with detachable stock warrants should be allocated between the bonds and the warrants based upon their relative fair values at the time of issuance.
In this case, the fair value of the bonds is not known, but the fair value of the warrants is $10 per warrant. Thus, the total fair value of the warrants is $20,000 ($10 × 2,000 warrants). The fair value of the debentures can be estimated to be $430,000 ($450,000 total proceeds – $20,000 fair value of warrants). The face value of the bonds $500,000 less the fair value of the bonds of $430,000 equals the bond discount of $70,000.
