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Exam 24: Liabilities

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Question 21

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In the statement of cash flows GST paid is included as part of the calculation of cash flow from o_______________ activities.

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Question 22

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The balance sheets of Green Ltd show: $\begin{array}{lrr} &31 \text { December }\\& 2013 & 2014 \\\text { Current tax liability } & \$ 30000 & \$ 45000\end{array}$ $\text { The income statement for the year ended } 31 \text { December } 2014 \text { shows: }$ Income tax expense $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ $ 45000 What amount in respect of income tax will appear in the statement of cash flows for the year ended 31 December 2014,assuming tax is paid annually in arrears and there are no over or under provisions of tax.

A) Nil
B) $30 000
C) $42 000
D) $45 000

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Question 23

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Which assertion relating to the statement of cash flows is incorrect?

The balance sheets of I.Turner,sole trader,showed: $\begin{array}{lrr} &30 \text { June }\\& 2013 & 2014 \\\text { Capital I. Turner } & \$ 150000 & \$ 190000\end{array}$ The profit for the year ended 30 June 2014 was $60 000.During the year additional capital of $40 000 was contributed in cash.Drawings in cash were made weekly.The amount of drawings for the year is:

IAS 7/AASB 107 requires external,non-cash investing and financing transactions to be disclosed in n_________ attached to the statement of cash flows.

The Doore Knob Company's accounting records are set out below: $\begin{array}{lcc}&\text { Beginning Balance }&\text {Ending Balance }\\&1000 & 1000 \\&\$ & \$\\\text { Accounts receivable } & 15 & 22 \\\text { Accounts payable } & 10 & 8 \\\text { Prepaid expenses } & 12 & 16 \\\text { Inventory } & 20 & 23 \\\text { Sales } & - & 80\\\text { Cost of sales }&-&30\\\text { Expenses (other than cost of sales) }&-&21\end{array}$ Determine the amount of cash paid for purchases of inventory during the period.

When preparing the note attached to the cash flow statement reconciling profit and cash flow from operations,proceeds from the disposal of non-current assets are:

The ledger account for buildings had a balance of $520 000 at the beginning of the year and a balance of $750 000 at the end of the year.If the buildings have been revalued upwards by $100 000 during the year what is the investing outflow for the period,for buildings,assuming no buildings were sold?

The statement of profit or loss of Zang Co shows accrual-basis interest income for the year ended 30 June 2014 as $400.The comparative balance sheets show that interest receivable at 30 June 2013 and 30 June 2014 was $45 and $80 respectively.Determine the amount of cash received by way of interest during the year.

The primary purpose of a statement of cash flows is to provide information about:

According to AASB's Interpretation 1031 how many of these statements relating to the treatment of GST in the statement of cash flows are true? A.All GST outlays and GST collections are regarded as effecting operating activities B.Cash flows from operating activities are reported at gross amounts inclusive of GST C.Cash flows from investing activities are shown net of GST,with GST on investing activities included as part of operating activities

If credit purchases are $100 000 determine the cash paid for the purchase of inventory for 2014. $\begin{array} { l r } \text { Beginning accounts payable } & \$ 30000 \\\text { Ending accounts payable } & 42000\end{array}$

Under IAS 7/AASB 107 which of these needs to be disclosed in the notes attached to the statement of cash flows?

The concept of cash adopted by IAS 7/AASB 107 covers cash on hand and cash e________________.

Tracy Co had a cost of sales during the year just ended of $180 000.During the year accounts payable and inventory each increased by $16 000.What amount of cash was paid for purchases during the year?

XYZ Ltd's financial information includes the following: $\begin{array}{lc}\text { Sales }&\$100,000\\\text { Accounts Receiv able balance } 1 \text { July } 13 & 30000 \\\text { Accounts Receiv able balance 30 June } 14 & 35000 \\\text { Bad debts written off [*] } & 1000 \\\text { Discount Allowed } & 5000\end{array}$ [*] The journal entry for bad debts written off debited Bad Debts Expense $1000 and credited Accounts Receivable $1000 direct write-off method) . The cash received from customers for the year ended 30 June 14 was:

When an annual statement of cash flows is prepared the sum of the three major components,operating activities,investing activities and financing activities,add up to:

A statement of cash flows prepared under IAS 7/AASB 107 classifies cash receipts and cash payments into o___________________,i_________________ and financing cash flows.

The accrual-basis tax expense in the income statement is $80 000,the beginning balance in the current tax liability account is $70 000 and the ending balance is $80 000.What is the amount of tax paid to be included in the statement of cash flows for the year?

The statement concerning the concept of cash adopted by IAS 7/AASB 107 that is incorrect is: