Accountıng Iı

Yanıt Açıklaması: Proprietorship is an entity owned by a single owner. This type of entity is the smallest and simplest one among the different types of entities.

Yanıt Açıklaması: The statement of cash flows reports: • Where cash came from (receipts) and how cash was spent (payments) • Why cash increased or decreased during period • Covers a span of time and is dated the same as the income statement. The correct answer is C.

Yanıt Açıklaması: Investing activities are the activities that increase or decrease long term assets such as property, plant, equipment, notes receivable and investments. This section of statement of cash flows shows cash inflows from selling long term assets and collecting of long term notes receivable and cash outflows for the purchase of long term assets and loaning long term notes receivable.

Yanıt Açıklaması: Bonds issued at face value (at par value) means stated interest rate is equal to market interest rate and no premium and discount exists. The correct answer is A.

Yanıt Açıklaması: Cash Flows from Investing Activities (CFI) contains: Cash inflows From the sale of property, plant, equipment, and investments From the collection of long term notes receivable Cash outflows To purchase property, plant, equipment, and investments For loans made to borrowers

Yanıt Açıklaması: Another distinguishing difference of a corporation is about taxation. Corporations are taxable entities. All of the corporations have to pay tax. Besides, when corporations make cash payments to the shareholders, double taxation may occur. The imposed taxation is paid by the corporation and the cash received by the shareholders is reported on the income tax return of the shareholder. The correct answer is C.

Yanıt Açıklaması: The cash outflows from financing activities are for payment of dividends and buying treasury share  and for repayments of loans. The correct answer is D.

Yanıt Açıklaması: If a corporation wants to pay cash dividends, three conditions required are as follows: 1. Sufficient retained earnings 2. Adequate cash 3. Declared dividends by the board of directors. The correct answer is C.

Yanıt Açıklaması: Depletion - Depreciation - Amortization should be brought to the places left blank in the question.

Yanıt Açıklaması: Amortization rate = 1/Patent's useful life = 1/5 =% 20

Yanıt Açıklaması: Adjustment process to the cost as bond interest expense over the life of bonds called amortization. The method used for amortization of a discount or premium is called effective interest method. The correct answer is E.

Yanıt Açıklaması: = 2.500.000 /10= 250.000

Yanıt Açıklaması: Face value is the amount written on a debt security to be paid by issuer upon delivery at maturity date. The correct answer is D.

Yanıt Açıklaması: A corporation is a legal entity which is organized under state law and owned by shareholders. Thus, the owners in a corporation are called shareholders.

Yanıt Açıklaması: Partnership is an entity owned by two or more owners.

Yanıt Açıklaması: The cancellation of the corporation does not depend on the death of any shareholder or their choices to cancel it. In other words, the corporation is a permanent organization. The transfer of the shares, anyone’s death or withdrawal do not put an end to the corporation. The correct answer is D.

Yanıt Açıklaması: Present Value of the Principal 150,000 TL x 0.56743 (Appendix A, Table 1, n: 5, i: 12%) 85,114 TL Present Value of the Interest Payments 18,000 TL x 3.60478 (Appendix A, Table 2, n: 5, i: 12% ) 64,886 TL Present value (selling price) of the bonds 150,000 TL The correct answer is D.

Yanıt Açıklaması: Companies normally use the straight-line method for amortizing intangible assets.

Yanıt Açıklaması: Shareholders’ Equity in Corporations

Yanıt Açıklaması: Long term liabilities consist of an expected outflow of resources arising from present obligations that are not payable within a year or the operating cycle of the company whichever is longer.