Question
choose right answer only: Company ABC data: Land on the balance sheet as of 12/31/2020 = $600,000 and on the balance sheet as of 12/31/2021:
choose right answer only:
Company ABC data: Land on the balance sheet as of 12/31/2020 = $600,000 and on the balance sheet as of 12/31/2021: $480,000; Acquisition of new land in 2021 for $100,000; Gain on disposal of land in 2021 of $80,000. Which of the following items does not appear in the 2021 statement of cash flows presented under the indirect method; Question options:
Operating activities: Adjustment- Gain on disposal: - $80,000
Investment deed: Receipt from sale of real estate: +$220,000
Investing activities: Receipts from sale of real estate: +$300,000
Investing activities: Disbursements for property acquisition: - $100,000
choose anser only:
Choose the correct answer regarding the effect of the following transaction on ABC Company's 2021 income statement.
On December 30, 2021, ABC receives an invoice for maintenance services for its machines provided throughout the month of December by another company. This invoice will be paid by ABC in March 2022. Question 12 options:
The result for 2021 is reduced when the company pays the invoice in March 2022.
No expense should be recognized in 2021 until the invoice is paid in 2022.
Recognition of the charge in December 2021 results in an increase in profit for the 2021 financial year
The recognition of the charge in December 2021, in the year in which it is incurred, increases the charges and reduces the result for the year 2021
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