Question
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
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
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