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How to do these 2 questions? AQ2 For each of the items listed below, classify the cash flows into operating, investing or financing activities: a.
How to do these 2 questions?
AQ2 For each of the items listed below, classify the cash flows into operating, investing or financing activities: a. Payment of income taxes b. Cash lent to borrowers c. Payment of the electricity account d. Money received from a customer e. The purchase for cash of some equipment f. The payment of a long-term liability g. Payment of interest h. The receipt of money from newly acquired loan AQ4 In its first year of operations, Tang Bhd generated RM78,000 for services provided, RM12,000 of which was on account and still outstanding at year-end. The remaining RM66,000 was received in cash from customers. The company incurred operating expenses of RM45,000. Of these expenses RM40,500 were paid in cash; RM4500 was still account at year-end. In addition, Tang paid in advance RM6500 for insurance coverage that would not commence until the second year of operations. Required: 1. Calculate the first year's profit under the cash basis accounting and the accrual basis accounting 2. Which basis of accounting provides more useful information for decision makersStep by Step Solution
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