17) Brown Inc. owed one of its creditors $350,000, but it did not have esough ca

Question

17) Brown Inc. owed one of its creditors $350,000, but it did not have esough cah to eury te d Following lengthy negotiations, the parties agreed that Brown lne would losat 50,800 haf Common Stock to settle the debt, How would this transection be showm on tse taherrwnt of cash A) in the operating activitles section B) in the investing activities section C) in the non-cash investing and financing ectivibes D) in the financing activitiles section 18) Sonesta Company sold equipment for cash. The income eatement shows a lons on ale of $7060 The net book value of the asset prlor to the sale was $26,900. Whidh of the folowing eaneewnts describes the cash effect of the transaction? A) negative cash flow of $19,900 foe opetating, activities B) positive cash flow of $33,900 from financing activties C) negative cash flow of $19,900 for financing activities D) positive cash flow of $19,900 froms investing activities 19) Which of the following is a cash outflow for a financing activity on the atement of casi Bows? A) payment of interest on a loan C) payment for purchasing inventory B) payment ol dividends D) payments to the governament for taxies 20) Which of the following sections of the statement of cash Slows incluade activiien that alfect cuen0) assets and current liabilities on the balance sheet? (Assume the indirect methed is used.) A) the non-cash investing and financing section B) the operating section C) the financing section D) the investing section 21) Which of the following is an objective of management accounting? 21) A) to provide information to business managers to assist them in controlling their business B) to provide information to shareholders to assist them with their investmvent decislens C) to ensure that the reports produced for intemal and exdenal business puroes ae GAAP compliant D) to generate financial statements of a conmpany for tax neporting A) It focuses on planning and controlling day-to-day operations B) It provides information to investors C) It focuses on detailed reports for parts of the company rather than the whole compary D) It provides forward-looking information 22) Which of the following statements is true of inancial accounting? needed for their Investment decisions needed for managing and delegating operations A) providing information that managers need to make operational decisions B) providing information to comply with laws and regulations of govemament bodies C) providing historical data to investors and creditors D) providing summarized results of operations 23) Which of the following is the primary objective of managerial hich suppliers deliver materials at the time they are 24) B) Enterprise resource planning (ERP D) Total quality management (TQAD A) Just-in-time am management C) Supply chain management 24) Which of the following describes a system in w needed and finished units are completed when customer orders ned to e

Explanation / Answer

17- (c) The non cash investing activities section

Reason: There is no actual outflow of cash in the settlement of debt.

18- (D) Positive inflow of $19900 from investing activities

Reason: Loss on sale of old equipment is $7000 on NBV of $26900. Hence SP is $19600. This generates cash. The loss will be deducted in the initial stage to adjust operating profit.

19- (A) PAyment of interest on loan

20(B) The operating section

21 (A) to provide information to management to control their business

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.