An accountant is preparing the statement of cash flows using the indirect method. She found on the balance sheet that the prior year’s net balance of equipment (equipment less accumulated depreciation) was $295,700, and the current year’s balance of equipment is $304,000. Depreciation expense during the current year was $22,400. During the year, the company sold equipment for $40,000, resulting in a gain of $21,600. On the statement of cash flows, what is the cash outflow for the purchase of equipment this year
The answer
: The following equation should be solved for the cash outflow
Ending equipment balance = Beginning balance - Depreciation - Carrying amount of the asset sold + Cash paid for equipment
The cash outflow for the purchase of equipment therefore may be determined as follows
Equipment at year-end (net) ----> $304,000
Beginning balance ----- > (295,700)
Depreciation --- > 22,400
Carrying amount of assets sold
18,400<---- ( sale $40,000 - $21,600 gain)
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Cash outflow - Purchase price---> $ 49,100
| 295,700 | رصيد المعدات للسنة السابقة (المعدات مطروحًا منه الاستهلاك المتراكم) |
| 22,400- | - اهلاك السنة الحالية |
| 18,400- | - القيمة الدفترية للأصول المباعة |
| |
| 254,900 | رصيد المعدا ت قبل مشتريات السنة |
| 304,000- | رصيد المعدات نهاية المدة للسنة الحالية كما 31-12 لهذه السنة |
| 49,100- | صافى التدفقات النقدية الخارجة (شراء أصل) (الأصول زادت و النقدية قلت) |
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?Which one of the following transactions should not be classified as a financing activity in the statement of cash flows
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A. Payment of dividends
B. Issuance of common stock
C. Income tax refund
D Purchase of treasury stock. D
Answer C is Correct
Financing activities include obtaining resources from owners and providing them with a return on, and a return of, their investment. Cash inflows from financing activities include proceeds from issuing equity instruments. Cash outflows include outlays to reacquire the enterprise's equity instruments, and outlays to pay dividends. However, an income tax refund is an operating activity
تشمل أنشطة التمويل الحصول على الموارد من الملاك وتزويدهم بعائد على استثماراتهم. تتضمن التدفقات النقدية الداخلة من الأنشطة التمويلية المتحصلات من إصدار أدوات حقوق الملكية. تشمل التدفقات النقدية الخارجة المصروفات لإعادة شراء أدوات حقوق الملكية للمؤسسة ، والنفقات لدفع الأرباح الموزعة. ومع ذلك ، فإن استرداد ضريبة الدخل هو نشاط تشغيلي
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A company pays more than the fair value to acquire treasury stock. The difference between the price paid to acquire the treasury stock and the fair value should be
recorded as
تدفع الشركة أكثر من القيمة العادلة للحصول على أسهم الخزينة. يجب تسجيل الفرق بين السعر المدفوع للحصول على مخزون الخزينة والقيمة العادلة على أنه؟
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A - An asset
B - An expense
C- A liability
D-Shareholders' equity
Answer D is Correct
Apart from cash paid or received, a firm cannot recognize assets, liabilities, gains, or losses from transactions in its own stock. Treasury stock is reported on the balance sheet as a subtraction from equity
بصرف النظر عن النقد المدفوع أو المستلم ، لا تستطيع الشركة تصنيف الأصول أو الخصوم أو المكاسب أو الخسائر من المعاملات في أسهمها الخاصة. يتم تسجيل أسهم الخزينة في الميزانية العمومية كطرح من حقوق الملكية (في هذه الحالة)
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..............In a statement of cash flows, interest payments to lenders and other creditors should be classified as cash outflows for
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The following information was taken from the accounting records of Oak Corporation for the year ended December 31
$4,000,000 Proceeds from issuance of preferred stock
$400,000 Dividends paid on preferred stock F
$2,000,000 Bonds payable converted to common stock
$500,000 Payment for the purchase of machinery
$1,200,000 Proceeds from the sale of the plant building
$300,000 2% stock dividend on common stock
$200,000 Gain on sale of plant building
The net cash flows from investing and financing activities that should be presented on The statement of cash flows for the year ended December 31 are, respectively?
A. $700,000 and $3,600,000.
B. $700,000 and $3,300,000.
C. $900,000 and $3,900,000.
D. $900,000 and $3,600,000.
Cash inflow from investment activities = Proceeds from the sale of plant building1,200,000- Payment for the purchase of machinery 500,000 =700,000
cash inflow from financing activities =Proceeds from issuance of preferred stock 4000,000- Dividends paid on preferred stock F 400,000 = $3,600,000
The correct answer is A. $700,000 and $3,600,000.
2,000,000 Bonds payable converted to common stock (A non-cash transaction will not be considered in the calculation of financing activities although will be disclosed as a note.
300,000 2% stock dividend on the common stock has no effect (non-cash)
200,000 Gain on sale of plant building is already counted (Included in net income (operation section)
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An entity enters into a contract with a customer to sell products X, Y, and Z in exchange for $250,000. Control over the products will be transferred to the customer at different points in time. The entity determines that the delivery of each product is a distinct performance obligation. Products X and Y are regularly sold separately and their standalone selling prices of $40,000 and $120,000, respectively, are directly observable.
The standalone selling price of product Z of $160,000 was estimated using the adjusted market assessment approach. The entity determined that the discount provided to the customer does not relate to one or more specific products in the contract. What revenue will be recognized by the entity on the sale of product X?
A. $40,000
B. $22,500
C. $31,250
D. $62,500
Answer
In this scenario, the entity enters into a contract to sell products X, Y, and Z in exchange for $250,000. Revenue recognition in such contracts is typically based on the principles of the International Financial Reporting Standards (IFRS) and U.S. Generally Accepted Accounting Principles (GAAP). To determine the revenue recognized for product X, we need to apply the principles of allocating the transaction price to the distinct performance obligations. Here's how you can calculate it:
Identify the standalone selling prices:
Product X: $40,000
Product Y: $120,000
Product Z: $160,000
Calculate the total standalone selling prices: $40,000 (X) + $120,000 (Y) + $160,000 (Z) = $320,000
Determine the relative allocation of the transaction price for each product:
Product X's relative allocation: $40,000 / $320,000 = 12.5%
Apply this allocation to the total contract price: $250,000 (contract price) * 12.5% = $31,250
موضوع: سؤال وجواب cma 2024 الجزء التانى 
الخميس أبريل 18, 2024 10:21 am