The sale of a fixed asset at a book value affects cash flows frominvestingactivities under thedirect and indirect methods (respectively)as follows:

Select one:

a. Outflow, Outflow

b. Inflow, Inflow

c. Outflow, No effect

d. No effect, No effect

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Investment Income recorded using the Equity Method should be presented in a statement of cash flows (using the indirect method) as a(n):

Select one:

a. Addition to net income in the Operating Activities section

b. Deduction from net income in the Operating Activities section

c. Investing activity

d. Financing activity

e. Footnote only

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A company acquired a building, paying a portion of the purchase price with available cash and issuing a mortgage note payable to a third party to obtain cash for the balance.In a statement of cash flows, what amount is included infinancingactivities for the above transaction?

Select one:

a. Cash paid using available cash

b. Acquisition price

c. Zero

d. Mortgage amount

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In a statement of cash flows (indirect method), which of the following areaddedto net income to determine net cash flow fromoperatingactivities?

Select one:

a. Amortization of Premium on Bonds Payable, but not Depreciation Expense

b. Depreciation Expense, but not Amortization of Premium on Bonds Payable

c. Both Amortization of Premium on Bonds PayableandDepreciation Expense

d. Neither Amortization of Premium on Bonds PayablenorDepreciation Expense

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In its statement of cash flows issued for the year ending December 31, Oxford Company reported a net cash inflow from operating activities of $123,000.The following adjustments were included in the supplementary schedule reconciling cash flow from operating activities with net income:

Depreciation$38,000

Increase in net accounts receivable31,000

Decrease in inventory27,000

Decrease in accounts payable48,000

Increase in prepaid expenses12,000

Net income is:

Select one:

a. $29,000

b. $125,000

c. $53,000

d. $149,000

e. $97,000

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Which of the following is shown onneitherthe indirect method statement of cash flowsnorthe direct method statement of cash flows?

Select one:

a. Paid Cash for Purchase of Land

b. Dividends Paid

c. Dividends Declared

d. Loss on Sale of Fixed Asset

e. Cash Paid to Vendors

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Range Co. provided the following information on selected transactions during 2018:

Purchase of land by issuing bonds to the seller$200

Proceeds from issuing bonds$500

Purchases of treasury stock$250

Purchase of Investment in Bonds$675

Dividends paid to preferred stockholders$300

Proceeds from issuing preferred stock$225

Proceeds from sale of equipment$150

The net cash provided (used) byfinancingactivities during 2018 is:

Select one:

a. $475

b. ($500)

c. $625

d. $175

e. $425

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The balance sheet data of Corinne Company at the end of 2018 and 2017 follow:

20182017

Cash$50$70

Accounts receivable (net)320270

Buildings and equipment180150

Accumulated depreciationbuildings and equipment(36)(16)

Land18080

Totals$694$554

Accounts payable$160$146

Notes payablebank, long-term080

Mortgage payable600

Common stock, $10 par418318

Retained earnings5610

Totals$694$554

Land worth $100 was acquired in exchange for common stock, par $100, during the year; all equipment purchased was with cash. Equipment costing $10 was sold for $4; book value of the equipment was $8 and the loss was reported as an ordinary item in net income. Cash dividends of $20 were charged to retained earnings and paid during the year; the transfer of net income to retained earnings was the only other entry in the Retained Earnings account.

In the statement of cash flows for the year ended December 31, 2018, the net cash provided (used) by operating activities was:

Select one:

a. $52

b. $34

c. ($40)

d. ($36)

e. $56

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Indicate which item could be included in compiling IFRS financial statements:

Select one:

a. Combining debt and equity characteristics of compound financial instruments, but not using the Cost Recovery method for Construction Accounting.

b. Using the Cost Recovery method for Construction Accounting, but not combining debtand equity characteristics of compound financial instruments.

c. Both combining debt and equity characteristics of compound financial instrumentsandusing the Cost Recovery method for Construction Accounting.

d. Neither combining debt and equity characteristics of compound financial instrumentsnorusing the Cost Recovery method for Construction Accounting.

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Inventory Information:

Historical Cost$10,000

Replacement Cost$6,000

Net Realizable Value$10,500

Net Realizable Value less normal profit$9,500

According to IFRS, the inventory is presented as what amount?

Select one:

a. $10,500

b. $10,000

c. $9,500

d. $6,000

e. $6,500

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A company acquires a bulldozer and its only two components for $500,000 on 1/1/19. The useful life of the bulldozer is 10 years with no salvage value. The treads with a value of $50,000 will need to be replaced every five years with no salvage value. The blade has a value of $20,000 and needs to be replaced every four years with no salvage value. The company uses the straight-line method to compute depreciation. Under IFRS, what is depreciation expense for 2019?

Select one:

a. $50,000

b. $57,000

c. $90,000

d. $58,000

e. $65,000

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Before application of the IFRS Revaluation option, the 12/31/17 balance sheet of the Ney Company included its only building:

The fair value at 12/31/17 was $360,000. No Revaluation was recorded in prior years. The Proportional Revaluation method is used. What is the effect of the revaluation adjustment on the 12/31/17 Accumulated Depreciation account and the 12/31/17 Total Stockholders' Equity, respectively?

Select one:

a. $180,000, $360,000

b. $360,000, $180,000

c. $180,000, $320,000

d. $320,000, $180,000

e. $360,000, $360,000

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Given data for equipment owned by the Greenleaf Company:

What is the impairment loss under IFRS?

Select one:

a. $4,600,000

b. $4,500,000

c. $2,600,000

d. $2,500,000

e. $2,800,000

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Jarvis Corporation owned a building with a book value of $109,000 at 12/31/10. The building had a 15-year remaining life and a revaluation surplus balance of $46,000 on that date. The company sold the building on 1/1/11 for $182,000. What is the gain to be recorded on this transaction per IFRS?

Select one:

a. $119,000

b. $182,000

c. $27,000

d. $46,000

e. $73,000

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Under IFRS, impairment losses may be reversed in subsequent years for:

Select one:

a. Intangible Assets with Finite Lives, but not Goodwill

b. Goodwill, but not Intangible Assets with Finite Lives

c. Both Intangible Assets with Finite LivesandGoodwill

d. Neither Intangible Assets with Finite LivesnorGoodwill