Accountıng Iı

Yanıt Açıklaması: In a balance sheet, obligations related with external financing sources named as “liabilities”. Liabilities are first classified as “Current (ShortTerm) Liabilities” and “Non-Current (LongTerm) Liabilities” based on the time period in which expected debt will be paid back. Short term liabilities consist of an expected outflow of resources arising from present obligations that are payable within a year or the operating cycle of the company whichever is longer. Whereas 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. The correct answer is D.

Yanıt Açıklaması: Sole proprietorship and partnership are not separate taxable entities.

Yanıt Açıklaması: With respect to the way they mature, bonds are classified as term bonds, serial bonds and callable bonds. Bond issues that mature on a single date are called “term bonds”. Bond issues that mature in installments are called “serial bonds”. Bond issues that give the issuer the right to call and retire the bonds prior to maturity is called “callable bonds.The correct answer is B.

Yanıt Açıklaması: Cash inflows from operating activities are either from  customers for the sales of merchandise inventory and services or interest and dividend income. The correct answer is E.

Yanıt Açıklaması: Large share dividends: These are the dividends which are greater than 20%–25% of the corporation’s issued shares. These types of dividends are rare. But, if a corporation decides on a large share dividend, par value or stated value should be used to record related transactions instead of market value because of the possible important effect of this transaction on the market price of the shares. The correct answer is B.

Yanıt Açıklaması: Intangible assets are a unique kind of non-current assets that provide certain legal rights, privileges, and competitive advantages to the business1. Intangible assets don’t have a physical substance or form unlike property, plant and equipment assets. Instead, intangible assets convey special rights from patents, copyrights, licenses, trademarks, etc. and other inventive works. Besides these, intangible assets also include pre-operating costs, research and development costs and leasehold improvements. The correct answer is A.

Yanıt Açıklaması: Present Value of the Principal $56,743 Present Value of the Interest Payments 36,048 Selling Price 92,791

Yanıt Açıklaması: Short-term (current) liabilities consist of an expected outflow of resources arising from present obligations that are payable within a year or the operating cycle of the company whichever is longer. The correct answer is A.

Yanıt Açıklaması: 1. Cash collections from customers 3. Payments to suppliers 2. Payments for operating expenses 5. Payments to employes 4. Payments of interests and income taxes To calculate operating cash flows for the direct method you can follow the steps in the given order above. The correct answer is C.

Yanıt Açıklaması: The first one is proprietorship which is owned by a single owner. This type of entity is the smallest and simplest one among the different types of entities. Proprietorship is an entity owned by a single owner. The owner of proprietorship is called as proprietor and his or her equity can be seen as only one item in owner’s equity section of the balance sheet. Proprietor is the owner of a sole proprietorship. The expiration of a proprietorship is caused either by the proprietor’s death or his/her choice of ending it. Also, the proprietor is personally liable for the proprietorship’s liabilities. However, the accounting process of the proprietorship is separate from the personal records of the proprietor. Another important characteristic is about taxation. A proprietorship is not a separate taxable entity. The proprietor pays tax on the income of proprietorship. The correct answer is D.

Yanıt Açıklaması: By some ratios, the relationship between shareholders’ equity items, their positions, results, and effects can be understood clearly. Thus the information on the financial statements can be used in some decision making processes.One of the ratios that is used for analysis is the Return on Equity (ROE). It measures a corporation’s profitability by presenting how much profit it generates with each item (TL) of shareholders’ equity. The correct answer is B.

Yanıt Açıklaması: Accounts payable arise from purchasing goods or services for use in a company’s operations. Amounts owed for goods or services purchased on account are accounts payable. Accounts payable are debts incurred in the normal course of a business, resulting from acquisition of inventories and supplies. In these kind of payables, there is no formal document stating the amount or the date of payment except the invoice that supplier issues1. Besides, the maturity of accounts payable is usually very close to issuance date, such as up to three months period. the correct answer is C.

Yanıt Açıklaması: Cash Flows from Operating Activities (CFO) contains: Cash inflow From customers for the sales of merchandise inventory and services From interest and dividend income Cash outflows For the purchase of merchandise inventory and payment of operating expenses For the interest expense and income tax expense

Yanıt Açıklaması: Bonds issued at discount means, market interest rate is more than the stated interest rate of the bond issued.

Yanıt Açıklaması: Depreciation Expenses: As you can remember from previous chapters, depreciation has no effect on cash, but like all other expenses decreases net income. So in order to reconcile net income to net cash flows from operations we have to add depreciation back to net income.The correct answer is B.

Yanıt Açıklaması: Bonds issued in the name of the owner are called registered bonds, bonds not issued in the name of the owner are called bearer (coupon) bonds. Bonds which pay interest from the profit of issuing company are called “income bonds”, bonds which pay interest from specified revenue sources are called “revenue bonds”. Bond issues that mature on a single date are called term bonds, bond issues that mature in installments are called serial bonds. The correct answer is C.

Yanıt Açıklaması: The second type of entity is a partnership which has at least two or more owners. In a partnership, the owners are called as partners. Partnerships are organized as small or medium size entities. Similar to proprietorship, the cancellation of the partnership may be caused either by one of the partners’ death or choice of cancelling it and the partners are personally liable for the partnership’s liabilities. Surely, based on the entity concept the accounting process of a partnership is separate from the personal records of the partners. Partnerships are not separate taxable entities. The correct answer is E.

Yanıt Açıklaması: Cash Flows from Financing Activities (CFF) contains: Cash inflows From issuance of share and selling treasury share From receipt of borrowing money Cash outflows For payment of dividends and buying treasury share For repayments of loans

Yanıt Açıklaması: Present Value of the Principal 200,000 TL x 0.62092 (Appendix A, Table 1, n: 5, i: 10%) 124,184 TL Present Value of the Interest Payments 24,000 x 3.79079 (Appendix A, Table 2, n: 5, i: 10% ) 90,979 TL Present value (selling price) of the bonds 215,163 TL Debit: Cash - 215,163 Credit: Long Term Bonds Payable - 200,000 Premium on LT Bonds Payable - 15,163 The correct answer is A.

Yanıt Açıklaması: Common share is not based on the types of entities but the others are.