Which of the following explains why payments to suppliers and employees is likely to be less than total operating expenses?

a) Prepaid expenses

b) Cost of sales

c) Accrued expenses

d) Depreciation, amortisation and impairment

e) All of these explain why payments to suppliers and employees is likely to be less than operating expenses

Which of the following events would NOT be classified as an operating activity in a Statement of Cash Flows?

Group of answer choices

The payment for inventory that remains unsold at the end of the period

The payment for inventory that was delivered in the previous period

The payment of an expense that remains prepaid at the end of the period

The payment of an accrued expense from the previous period

None of these alternatives they would all be classified as operating activities

Management is reviewing its draft statement of profit or loss for the period. They are concerned this draft profit result will not be received favourably by its shareholders and is seeking ways to increase it.

Which of the following measures would increase the draft profit?

Group of answer choices

Increase the allowance for doubtful debts

Decrease the estimated useful life of a major item of property, plant and equipment acquired during the period

Decrease the estimated warranty claims

None of these measures would increase draft profit

Increase the fair value estimate of land & buildings carried under the revaluation model