If a company uses the indirect method of calculating cash from operating activities, its statement of cash flows begins with cash collected from customers.
Indicate whether the statement is true or false
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Q. 2) Intangible assets provide specific legal rights to the owner.
Indicate whether the statement is true or false
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Q. 3) COBIT 5 has two main components: five _____________ and seven ________________.
Fill in the blank(s) with correct word
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Q. 4) Team Shirts issued 10-year bonds with a face value of 100,000. The bonds carry a 7 stated interest rate and pay interest once a year. They were issued when the market interest rate was 6 and sold for 107,360.
Required:
a. Complete the amortization schedule for the first two years of the bond issue using the effective interest method. Round to the nearest dollar.
Beginning carrying value Cash payment Interest expense Amortization of discount Ending carrying value
Year 1 107,360
Year 2
b. Put an X in the appropriate box to describe how each of these items will behave with each additional interest payment:
Increase Decrease Remain the same
1 Cash payment for interest
2 Interest expense
3 Bond carrying value
c. Fill in the correct dollar amounts:
At maturity, after the last interest payment has been made, the unamortized premium on the bonds will be ______________ and the carrying value of the bonds will be _______________.
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Q. 5) Merchandise is sold on account for 90, and the sale is subject to a retail sales tax of 6.40 . The amount that should be added to Accounts Receivable would be
a. 6.40.
b. 94.60.
c. 83.60.
d. 96.40.
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Q. 6) The statement of cash flows shows all of ________ the period.
A) the cash a company has collected and paid during
B) the revenues earned and expenses incurred during
C) assets, liabilities and shareholders' equity at the end of
D) the changes in shareholders' equity during
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