Answer: IFRS permits the classification of cash outflows for interest expense under operating or financing based on which one results in better cash flows from operating activities.
Explanation: The cash flow statement includes only inflows and outflows of cash and cash equivalents; it excludes transactions that do not directly affect cash receipts and payments. These non-cash transactions include depreciation or write-offs on bad debts or credit losses to name a few.
Answer:
If an economy grows at 7% per year, it will take 70 / 7 = 10 years for the size of that economy to double, and so on.
Answer: Liabilities
Explanation: The Balance sheet which is also known as the statement of financial position represent or shows an entity financial position at a single point in time. That is, it shows the Owners equity(capital), Liabilities and Assets of a firm for a financial period, usually a year.
On the other hand, the income statement shows and entity profitability over a period of time
Answer and Explanation:
The vertical analysis is presented below:
Comparative Balance Sheet
<u>Particulars Dec 31, 2020 Percentage Dec 31, 2019 Percentage
</u>
(a) [(a) ÷ $3200000] × 100 (b) [(b) ÷ $3000000] ×100
Accounts
receivables $400,000 12.5% $400,000 13.3%
Inventory $864,000 27.0% $600,000 20.0%
Total Assets $3,200,000 100.0% $3,000,000 100.0%
Nothing really, you just might have a better idea of your budget if you do.
