Accountıng Iı

Yanıt Açıklaması: Financing activities are the activities that increase or decrease long term liabilities and equity. So in the cash flow statement, financing activities include cash inflows and outflows involved in long term liabilities and equity such as issuing shares, paying dividends and buying and selling treasury shares, borrowing money and paying off long term liabilities such as notes payable, bonds payable.

Yanıt Açıklaması: Contingent liabilities are reported just in footnotes because of the uncertainty included in its measurement or existence. The correct answer is A.

Yanıt Açıklaması: When all bonds of an issue mature at the same time, they are called term bonds.

Yanıt Açıklaması: Share dividend is a distribution of a corporation’s own shares to the shareholders as dividends.

Yanıt Açıklaması: If the bonds mature over several dates, they are called serial bonds.

Yanıt Açıklaması: The indirect method adjusts accrual basis net profit or loss for the effects of non-cash transactions. Indirect method relies on necessary additions and subtractions from net profit to find operating cash flows. Indirect method starts with net income and reconciles to net cash provided by operating activities. The direct method shows each major class of gross cash receipts and gross cash payments. The direct method shows all cash receipts and cash payments from operating activities. It shows cash inflows and outflows more clearly, and it is more comprehensible than indirect method. The correct answer is C.

Yanıt Açıklaması: Return Equity=Net Income/Average shareholders' equity The correct answer is A.

Yanıt Açıklaması: The two most common types of derivative instruments are options and forwards or futures contracts. Investing in an option contract gives the investor the right, but not obligation, to buy or sell a predetermined quantity of financial instruments in future at a specified price. While a call option gives right to buy instruments, a put option provides the selling right. The correct answer is D.

Yanıt Açıklaması: The carrying value is the face amount minus any unamortized discount or plus any unamortized premium.The term carrying value is synonymous with book value. The correct answer is C.

Yanıt Açıklaması: Retained earnings account’s credit balance indicates that the corporation’s lifetime earnings exceed lifetime losses and dividends

Yanıt Açıklaması: Then the common dividend amount is calculated just by subtracting the preferred dividend. Then the remaining amount will be the common share dividend amount: 200.000- 40.000 = 160.000

Yanıt Açıklaması: License is privilege granted by a government to use public property in performing services. A license granted by a governmental body permits a company to use public property in performing its services. The correct answer is E.

Yanıt Açıklaması: Licenses are privileges granted by a government to use public property in performing services. A license granted by a governmental body permits a company to use public property in performing its services. The correct answer is E.

Yanıt Açıklaması: Comprehensive income components are as follows: • Unrealized gains or losses • Foreign-currency translation adjustments • Gains (losses) from post-retirement benefit plans • Deferred gains (losses) derivatives.

Yanıt Açıklaması: Liabilities have three main characteristics: • They occur because of a past transaction or event. • They create a present obligation for future payment of cash or services. • They are an unavoidable obligation. The correct answer is C.

Yanıt Açıklaması: When selling price of a bond is equal to its face value that means it is sold at face value (at par). When selling price of a bond is different from its face value that means it is sold either at premium or discount. The correct answer is C.

Yanıt Açıklaması: Payments to suppliers is the sum of payments for inventory and payments for operating expenses. The correct answer is A.

Yanıt Açıklaması: Book value per share represents the amount of the owner’s equity on the corporation’s books for each common share. The correct answer is B.

Yanıt Açıklaması: Issue price is the amount that is received from issuing shares.

Yanıt Açıklaması: Accounts Payable are typically short term as credit terms are usually between 30 and 90 days. The correct answer is C.