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CHAPTER 5
STATEMENT OF FINANCIAL POSITION AND

STATEMENT OF CASH FLOWS
CHAPTER LEARNING OBJECTIVES
1. Explain the uses and limitations of a statement of financial position.
2. Identify the major classifications of the statement of financial position.
3. Prepare a classified statement of financial position using the report and account formats.
4. Indicate the purpose of the statement of cash flows.
5. Identify the content of the statement of cash flows.
6. Prepare a basic statement of cash flows.
7. Understand the usefulness of the statement of cash flows.
8. Determine additional information requiring note disclosure.
9. Describe the major disclosure techniques for financial statements.
*10. Identify the major types of financial ratios and what they measure.
* This information can be found in an Appendix to the chapter
5-2
Test Bank for Intermediate Accounting: IFRS Edition, 2e
TRUE FALSEConceptual
1. Liquidity refers to the ability of an enterprise to pay its debts as they mature.
2. The statement of financial position omits many items that are of financial value to the
business but cannot be recorded objectively.
3. Financial flexibility measures the ability of an enterprise to take effective actions to alter the
amounts and timing of cash flows.
4. Under IFRS the statement of financial position is often referred to as the statement of
changes in equity.
5. Companies frequently describe the terms of all long-term liability agreements in notes to the
financial statements.
6. An asset which is expected to be converted into cash, sold, or consumed within one year of
the statement date is always reported as a current asset.
7. Land held for speculation is reported in the property, plant, and equipment section of the
statement of financial position.
8. Under IFRS a company may use the term reserve to include items such as retained
earnings, share premium, and accumulated other comprehensive income.
9. On the statement of financial position the non-controlling interest account is reported as a
long-term investment.
10. The equity section of an IFRS statement of financial position includes share capital, share
premium, and retained earnings in that order.
11. The account form and the report form of the statement of financial position are both
acceptable under IFRS.
12. The primary purpose of a statement of cash flows is to report the cash effects of operations
during a period.
13. The statement of cash flows reports only the cash effects of operations during a period and
financing transactions.
14. Financial flexibility is a companys ability to respond and adapt to financial adversity and
unexpected needs and opportunities.
15. Collection of a loan is reported as an investing activity in the statement of cash flows.
16. Under IFRS the payment of dividends may be reported as either an investing activity or a
financing activity.
17. Companies determine cash provided by operating activities by converting net income on an
accrual basis to a cash basis.
Statement of Financial Position and Statement of Cash Flows
5-3
18. Significant financing and investing activities that do not affect cash are not reported in the
statement of cash flows or any other place.
19. Under IFRS non-cash activities are reported as either investing or financing activities in the
body of the statement of cash flows.
20. Financial statement readers often assess liquidity by using current cash debt coverage.
21. Free cash flow is net income less capital expenditures and dividends.
22. The IASB recommends disclosure for all significant accounting principles and methods that
involve selection from among alternatives.
23. Companies present a Summary of Significant Accounting Policies generally as the first
note to the financial statements.
24. IFRS requires that a complete set of financial statements be presented annually and that for
comparative purposes, companies must include three complete sets of financial statements
and related notes.
25. IFRS requires specific note disclosures on inventories that are disaggregated into
classifications such as merchandise, production supplies, work in process, and finished
goods.
26. Companies may use parenthetical explanations, notes, cross references, and supporting
schedules to disclose pertinent information.
27. The accounting profession has recommended that companies use the word reserve only to
describe amounts deducted from assets.
28. On the statement of financial position, an adjunct account reduces either an asset, a liability,
or an equity account.
29. Under IFRS, companies may offset assets and liabilities; for example, accounts payable
may be offset against cash to report net cash available for other expenses.
30. Under IFRS an adjunct account on the statement of financial position increases an asset,
liability, or equity account.
True False AnswersConceptual

Item
1.
2.
3.
4.
5.
6.
Ans.
F
T
T
F
T
F
Item
7.
8.
9.
10.
11.
12.
Ans.
F
T
F
T
T
F
Item
13.
14.
15.
16.
17.
18.
Ans.
F
T
T
F
T
F
Item
19.
20.
21.
22.
23.
24.
Ans.
F
T
F
T
T
F
Item
25.
26.
27.
28.
29.
30.
Ans.
T
T
F
F
F
T
5-4
MULTIPLE CHOICEConceptual
31.
Which of the following is a limitation of the statement of financial position?

a. Many items that are of financial value are omitted.
b. Judgments and estimates are used.
c. Current fair value is not reported.
d. All of these choices are correct.
32.
The statement of financial position is useful for analyzing all of the following except
a. liquidity.
b. solvency.
c. profitability.
d. financial flexibility.
33.
Statement of financial position information is useful for all of the following except to
a. compute rates of return
b. analyze cash inflows and outflows for the period
c. evaluate capital structure
d. assess future cash flows
34.
Statement of financial position information is useful for all of the following except
a. assessing a company's risk
b. evaluating a company's liquidity
c. evaluating a company's financial flexibility
d. determining free cash flows.
35.
A limitation of the balance sheet that is not also a limitation of the income statement is
a. the use of judgments and estimates
b. omitted items
c. the numbers are affected by the accounting methods employed
d. valuation of items at historical cost
36.
The statement of financial position contributes to financial reporting by providing a basis

for all of the following except
a. computing rates of return.
b. evaluating the capital structure of the enterprise.
c. determining the increase in cash due to operations.
d. assessing the liquidity and financial flexibility of the enterprise.
37.
One criticism not normally aimed at a statement of financial position prepared using
current accounting and reporting standards is
a. failure to reflect current value information.
b. the extensive use of separate classifications.
c. an extensive use of estimates.
d. failure to include items of financial value that cannot be recorded objectively.

P
5-5
38.
The amount of time that is expected to elapse until an asset is realized or otherwise
converted into cash is referred to as
a. solvency.
b. financial flexibility.
c. liquidity.
d. exchangeability.
39.
The statement of financial position

a. Omits many items that are of financial value.
b. Makes very limited use of judgments and estimates.
c. Uses fair value for most assets and liabilities.
d. All of the choices are correct regarding the statement of financial position.
40.
The statement of financial position can help assess all of the following except
a. Solvency.
b. Financial flexibility.
c. Profitability.
d. Liquidity.
41.
The net assets of a business are equal to

a. current assets minus current liabilities.
b. total assets plus total liabilities.
c. total assets minus total shareholders' equity.
d. none of these choices are correct.
42.
The correct order to present current assets is

a. cash, accounts receivable, prepaid items, inventories.
b. inventories, receivables, prepaid items, cash.
c. cash, inventories, accounts receivable, prepaid items.
d. inventories, prepaid items, accounts receivable, cash.
43.
The basis for classifying assets as current or noncurrent is conversion to cash within
a. the accounting cycle or one year, whichever is shorter.
b. the operating cycle or one year, whichever is longer.
c. the accounting cycle or one year, whichever is longer.
d. the operating cycle or one year, whichever is shorter.
44.
The basis for classifying assets as current or noncurrent is the period of time normally
required by the accounting entity to convert cash invested in
a. inventory back into cash, or 12 months, whichever is shorter.
b. receivables back into cash, or 12 months, whichever is longer.
c. tangible fixed assets back into cash, or 12 months, whichever is longer.
d. inventory back into cash, or 12 months, whichever is longer.
45.
The current assets section of the statement of financial position should include
a. machinery.
b. patents.
c. goodwill.
d. inventory.
5-6
46.
Which of the following is a current asset?

a. Cash surrender value of a life insurance policy of which the company is the beneficiary.
b. Investment in equity securities for the purpose of controlling the issuing company.
c. Cash designated for the purchase of tangible fixed assets.
d. Trade installment receivables normally collectible in 18 months.
47.
Equity or debt securities held to finance future construction of additional plants should be
classified on a balance sheet as
a. current assets.
b. property, plant, and equipment.
c. intangible assets.
d. long-term investments.
48.
Each of the following are an intangible asset except

a. copyrights.
b. goodwill.
c. plant expansion fund.
d. trademarks.
49.
Which of the following is not a long-term investment?

a. Investments in ordinary shares
b. Franchise
c. Land held for speculation
d. A sinking fund
50.
A generally accepted method of valuation is

1. trading securities at market value.
2. accounts receivable at net realizable value.
3. inventories at current cost.
a. 1
b. 2
c. 3
d. 1 and 2
51.
Which item below is not a current liability?

a. Unearned revenue
b. Share dividends distributable
c. The currently maturing portion of long-term debt
d. Trade accounts payable
52.
Working capital is
a. capital which has been reinvested in the business.
b. unappropriated retained earnings.
c. cash and receivables less current liabilities.
d. none of these choices are correct.
5-7
53.
An example of an item which is not an element of working capital is

a. accrued interest on notes receivable.
b. goodwill.
c. goods in process.
d. short-term investments.
54.
Non-current liabilities include

a. obligations not expected to be liquidated within the next year or operating cycle.
b. obligations payable at some date beyond the next year or operating cycle.
c. deferred income taxes and most lease obligations.
55.
Which of the following should be excluded from long-term liabilities?

a. Obligations payable at some date beyond the operating cycle
b. Most pension obligations
c. Non-current liabilities that mature within the operating cycle and will be paid from a
sinking fund
d. None of these choices are correct.
56.
Treasury shares should be reported as a(n)

a. current asset.
b. investment.
c. other asset.
d. reduction of equity.
57.
Which of the following should be reported for share capital?

a. The shares authorized
b. The shares issued
c. The shares outstanding
58.
The shareholders' equity section is usually divided into how many parts?
a. 6
b. 5
c. 4
d. 3
59.
Which of the following is not an acceptable major asset classification?

a. Current assets
b. Investments
c. Property, plant, and equipment
d. Deferred charges
5-8
60.

Fulton Company owns the following investments:
Trading securities (fair value)
Non-trading securities (fair value)
Held-for-collection securities (amortized cost)
$70,000
35,000
47,000
Fulton will report investments in its current assets section of

a. $0.
b. exactly $70,000.
c. $70,000 or an amount greater than $70,000, depending on the circumstances.
d. exactly $105,000.
61.
For Grimmett Company, the following information is available:

Capitalized leases
Trademarks
Long-term receivables
200,000
55,000
75,000
In Grimmetts statement of financial position, intangible assets should be reported at

a. 55,000.
b. 75,000.
c. 255,000.
d. 275,000.
62.
Houghton Company has the following items: share capitalordinary, $820,000; treasury
shares, $85,000; deferred taxes, $100,000 and retained earnings, $313,000. What
amount should Houghton Company report as total equity?
a. $948,000.
b. $1,048,000.
c. $1,148,000.
d. $1,218,000.
63.
Kohler Company owns the following investments:

Trading securities (fair value)
Non-trading securities (fair value)
Held-for-collection securities (amortized cost)
60,000
45,000
57,000
Kohler will report securities in its long-term investments section of

a. exactly 105,000.
b. exactly 117,000.
c. exactly 162,000.
d. 102,000 or an amount less than 102,000, depending on the circumstances.
64.
For Randolph Company, the following information is available:

Capitalized leases
Trademarks
Long-term receivables
R280,000
110,000
105,000
In Randolphs statement of financial position, intangible assets should be reported at

a. R110,000.
b. R105,000.
c. R390,000.
d. R385,000.
5-9
65.
Olmsted Company has the following items: share capitalordinary, $920,000; treasury
shares, $85,000; deferred taxes, $100,000 and retained earnings, $363,000. What
amount should Olmsted Company report as total equity?
a. $1,098,000.
b. $1,198,000.
c. $1,298,000.
d. $1,398,000.
66.
Stine Corp.'s trial balance reflected the following account balances at December 31, 2015:
Accounts receivable (net)
R$24,000
Trading securities
6,000
Accumulated depreciationequipment
15,000
Cash
21,000
Inventory
30,000
Equipment
25,000
Patent
4,000
Prepaid expenses
2,000
Land held for future business site
18,000
In Stine's December 31, 2015 statement of financial position, the current assets total is
a. R$101,000.
b. R$92,000.
c. R$87,000.
d. R$83,000.
67.
Within the statement of financial position companies should separately report all of the
following except
a. Assets and liabilities with different general liquidity characteristics.
b. Assets and liabilities that have been financed with different types of instruments.
c. Assets that differ in their expected function in the companys central operations.
d. Liabilities that differ in their amounts, timing, and nature.
68.
Within the statement of financial position where should the account non-controlling
interest (minority interest) be reported?
a. Non-current assets.
b. Non-current liabilities.
c. Equity.
d. Current liabilities.
69.
On the statement of financial position all of the following are reported as investments
except
a. Bonds, ordinary shares, and long-term notes.
b. Non-controlling interest.
c. Pension funds.
d. Non-consolidated subsidiaries.
5 - 10
70.

Caroline, Inc. hired a new controller in late 2015. The controller has not prepared financial
statements using IFRS before and needs your assistance. In compiling a complete set of
financial statements under IFRS, in what order should the following items be reported in
the equity section on the statement of financial position at December 31, 2015? If an item
is not reported in the equity section, omit it from your answer.
I.
Share premium
II.
Retained earnings
III.
Investments
IV.
Non-controlling interest
V.
Accumulated comprehensive income
VI.
Share capital
a.
b.
c.
d.
71.
Using IFRS, which of the following items is matched correctly with its basis of valuation for
purposes of reporting on the statement of financial position?
Item
Basis of Valuation
I.
Inventory
A.
Cost
II.
Prepaid expenses
B.
Estimated amount collectible
III.
Receivables
C.
Lower-of-cost-or net realizable value
a.
b.
c.
d.
72.
I, VI, IV, II, V, III

VI, I, II, V, IV
VI, I, IV, II, V
III, VI, I, II, IV, V
I and A
II and C
III and B
II and B
Presented below are data for Antwerp Corp.

Assets, January 1
Liabilities, January 1
Equity, Jan. 1
Dividends
Increase in share capitalordinary
Equity, Dec. 31
Net Income
Equity at January 1, 2014 is
a. 504.
b. 560.
c. 1,220.
d. 1,724.
2014
2015
2016
2,800
1,580
?
560
504
?
560
3,360
?
?
420
448
?
448
?
2,016
2,100
476
500
1,596
?

73.
5 - 11
Presented below are data for Bandkok Corp.

Assets, January 1
Liabilities, January 1
Equity, Jan. 1
Dividends
Increase in share capitalordinary
Equity, Dec. 31
Net Income
2014
2015
2016
Rp 5,400
3,440
?
1,080
972
?
1,080
Rp6,480
?
?
810
864
?
864
?
Rp3,888
4,050
918
920
3,078
?
Equity at January 1, 2015 is

a. Rp1,690.
b. Rp1,798.
c. Rp2,932.
d. Rp2,986.
74.
Rosalie Corporation is located in London but does business throughout Europe. The
company builds and sells equipment used in manufacturing pharmaceuticals. On
December 31, 2015, Rosalie has trading securities valued at 63,000; goodwill valued at
450,000; prepaid insurance valued at 36,000; patents valued at 210,000; and a
customer list valued at 390,000. On Rosalie Corporations statement of financial position
at December 31, 2015, what amount should be reported as intangible assets?
a. 1,113,000
b. 1,149,000
c. 1,050,000
d. 660,000
75.
The financial statement which summarizes operating, investing, and financing activities of
an entity for a period of time is the
a. retained earnings statement.
b. income statement.
c. statement of cash flows.
d. statement of financial position.
76.
The statement of cash flows provides answers to all of the following questions except
a. where did the cash come from during the period?
b. what was the cash used for during the period?
c. what is the impact of inflation on the cash balance at the end of the year?
d. what was the change in the cash balance during the period?
77.
The statement of cash flows reports all of the following except

a. the net change in cash for the period.
b. the cash effects of operations during the period.
c. the free cash flows generated during the period.
d. investing transactions.
5 - 12
78.
Which of the following events will appear in the cash flows from financing activities section
of the statement of cash flows?
a. Cash purchases of equipment.
b. Cash purchases of bonds issued by another company.
c. Cash received as repayment for funds loaned.
d. Cash purchase of treasury stock.
79.
Making and collecting loans and disposing of property, plant, and equipment are
a. operating activities.
b. investing activities.
c. financing activities.
d. liquidity activities.
80.
In preparing a statement of cash flows, sale of treasury stock at an amount greater than
cost would be classified as a(n)
a. operating activity.
b. financing activity.
c. extraordinary activity.
d. investing activity.
81.
In preparing a statement of cash flows, which of the following transactions would be

considered an investing activity?
a. Sale of equipment at book value
b. Sale of merchandise on credit
c. Declaration of a cash dividend
d. Issuance of bonds payable at a discount
82.
Preparing the statement of cash flows, using the indirect method, involves all of the
following except determining the
a. cash provided by operations.
b. cash provided by or used in investing and financing activities.
c. change in cash during the period.
d. cash collections from customers during the period.
83.
In a statement of cash flows, receipts from sales of property, plant, and equipment and
other productive assets should generally be classified as cash inflows from
b. financing activities.
c. investing activities.
d. selling activities.
84.
In a statement of cash flows, interest payments to lenders and other creditors should be
classified as cash outflows for
b. borrowing activities.
c. lending activities.
d. financing activities.
5 - 13
85.
In a statement of cash flows, proceeds from issuing equity instruments should be

classified as cash inflows from
a. lending activities.
b. operating activities.
c. investing activities.
d. financing activities.
86.
On the statement of cash flows, which of the following items will affect both financing
activities and operating activities?
a. Issuance of equity securities.
b. Collection of loans to other entities.
c. Payment of dividends.
d. Redemption of debt.
87.
If ordinary shares were issued to acquire an CHF8,000 machine, how would the
transaction appear on the statement of cash flows?
a. It would depend on whether or not the direct method or the indirect method was used.
b. It would be a positive CHF8,000 in the financing section and a negative CHF8,000 in
the investing section.
c. It would be a negative CHF8,000 in the financing section and a positive CHF8,000 in
the investing section.
d. It would not appear on the statement of cash flows but rather in a cash flow note.
88.
In preparing a statement of cash flows, cash flows from operating activities

a. are always equal to accrual accounting income.
b. are calculated as the difference between revenues and expenses.
c. can be calculated by appropriately adding to or deducting from net income those items
in the income statement that do not affect cash.
d. can be calculated by appropriately adding to or deducting from net income those items
in the income statement that do affect cash.
89.
Lohmeyer Corporation reports:

Cash provided by operating activities
Cash used by investing activities
Cash provided by financing activities
Beginning cash balance
What is Lohmeyers ending cash balance?
a. $330,000.
b. $400,000.
c. $550,000.
d. $620,000.
$250,000
110,000
140,000
120,000
5 - 14
90.

Keisler Corporation reports:
Cash provided by operating activities
Cash used by investing activities
Cash provided by financing activities
Beginning cash balance
TL200,000
110,000
140,000
90,000
What is Keislers ending cash balance?

a. TL250,000.
b. TL320,000.
c. TL470,000.
d. TL540,000.
91.
During 2015 the DLD Company had a net income of W200,000. In addition, selected
accounts showed the following changes:
Accounts Receivable
W12,000 increase
Accounts Payable
4,000 increase
Buildings
16,000 decrease
Depreciation Expense
6,000 increase
Bonds Payable
32,000 increase
What was the amount of cash provided by operating activities?
a. W198,000
b. W200,000
c. W206,000
d. W238,000
92.
Harding Corporation reports the following information:

Net income
Depreciation expense
Increase in accounts receivable
R$1,000,000
280,000
120,000
Harding should report cash provided by operating activities of

a. R$600,000.
b. R$840,000.
c. R$1,160,000.
d. R$1,400,000.
93.
Sauder Corporation reports the following information:

Net income
HK$750,000
210,000
90,000
Sauder should report cash provided by operating activities of

a. HK$450,000.
b. HK$630,000.
c. HK$870,000.
d. HK$1,050,000.
5 - 15
94.
Caroline, Inc. exchanged a tract of land it held in Mississippi for a tract of land owned by
Rosalie Corporation located in Illinois. How is this transaction reported on Caroline, Inc.s
statement of cash flows?
a. As a cash inflow from investing activities and a cash outflow from financing activities.
b. As a cash inflow and a cash outflow from investing activities.
c. As a cash inflow and a cash outflow from financing activities.
d. This transaction is not reported in the body of the statement of cash flows.
95.
Caroline, Inc. had the following transactions during 2015:

Exchanged land for a building $764,000
Purchased treasury shares
160,000
Paid cash dividend
380,000
Purchased equipment
212,000
Issued ordinary shares
588,000
What is Caroline, Inc.s net cash provided (used) by investing activities?
a. $212,000 used by investing activities.
b. $552,000 provided by investing activities.
c. $372,000 used by investing activities.
d. $392,000 provided by investing activities.
96.
Caroline, Inc. had the following transactions during 2015:

Exchanged land for a building
Purchased treasury shares
Paid cash dividend
Purchased equipment
Issued ordinary shares
764,00
0
160,000
380,000
212,000
588,000
What is Caroline, Inc.s net cash provided (used) by financing activities?

a. 600,000 provided by financing activities.
b. 48,000 provided by financing activities.
c. 48,000 used by financing activities.
d. 428,000 used by financing activities.
97.
Cash debt coverage is computed by dividing net cash provided by operating activities by
a. average non-current liabilities.
b. average total liabilities.
c. ending non-current liabilities.
d. ending total liabilities.
98.
Current cash debt coverage is often used to assess

a. financial flexibility.
b. liquidity.
c. profitability.
d. solvency.
5 - 16
99.

A measure of a companys financial flexibility is
a. cash debt coverage.
b. current cash debt coverage.
c. free cash flow.
d. cash debt coverage and free cash flow.
100.
Free cash flow is calculated as net cash provided by operating activities less
a. capital expenditures.
b. dividends.
c. capital expenditures and dividends.
d. capital expenditures and depreciation.
101.
One of the benefits of the statement of cash flows is that it helps users evaluate financial
flexibility. Which of the following explanations is a description of financial flexibility?
a. The nearness to cash of assets and liabilities.
b. The firm's ability to respond and adapt to financial adversity and unexpected needs
and opportunities.
c. The firm's ability to pay its debts as they mature.
d. The firm's ability to invest in a number of projects with different objectives and costs.
102.
Net cash provided by operating activities divided by average total liabilities equals
a. current cash debt coverage.
b. cash debt coverage.
c. free cash flow.
d. the current ratio.
103.
Packard Corporation reports the following information:

Net cash provided by operating activities
Average current liabilities
Average non-current liabilities
Dividends declared
Capital expenditures
Payments of debt
275,000
150,000
100,000
60,000
110,000
35,000
Packards cash debt coverage is

a. 1.10.
b. 1.83.
c. 2.75.
d. 6.11.
104.
Packard Corporation reports the following information:

Dividends paid
Payments of debt
Packards free cash flow is
a. $70,000.
b. $105,000.
$275,000
150,000
100,000
60,000
110,000
35,000
5 - 17
c. $165,000.
d. $215,000.
105.
Pedigo Corporation reports the following information:

Dividends paid
Payments of debt
225,000
150,000
100,000
60,000
110,000
35,000
Pedigos cash debt coverage is

a. 0.90.
b. 1.50.
c. 2.25.
d. 4.09.
106.
In a statement of cash flows, payments to acquire debt instruments of other entities (other
than cash equivalents) should be classified as cash outflows for
b. investing activities.
c. financing activities.
d. lending activities.
107.
Which of the following statement of financial position classifications would normally

require the greatest amount of supplementary disclosure?
a. Current assets
b. Current liabilities
c. Plant assets
d. Long-term liabilities
108.
The presentation of non-current liabilities in the statement of financial position should

disclose
a. maturity dates.
b. interest rates.
c. conversion rights.
5 - 18
109.
A complete set of financial statements includes each of the following except

a. a statement of comprehensive income.
b. a statement of changes in equity.
c. notes.
d. All of these answers are included.
110.
Accounting policies include each of the following except

a. principles.
b. conventions.
c. rules.
d. All of these answers are included.
111.
Caroline, Inc. hired a new controller in late 2015. The controller has not prepared financial
statements using IFRS before and needs your assistance. In compiling a complete set of
financial statements under IFRS, which of the following components must be included?
a. A statement of financial position at the end of the period.
b. Notes, including a summary of significant accounting policies.
c. A statement of comprehensive income for the period.
112.
Which of the following statements is incorrect regarding notes to the financial

statements?
a. IFRS requires specific note disclosures including disaggregation of inventories into
classifications such as merchandise, production supplies, work in process, and
finished goods.
b. IFRS requires a maturity analysis for receivables.
c. IFRS requires that all notes be clear, simple to understand, and non-technical in
nature.
d. All of the choices are correct regarding notes to the financial statements.
113. Which of the following is a contra account?

a. Premium on bonds payable
b. Unearned service revenue
c. Patents
d. Accumulated depreciation
114.
Which of the following is not a method of disclosing pertinent information?

a. Supporting schedules
b. Parenthetical explanations
c. Cross reference and contra items
d. All of these are methods of disclosing pertinent information.
5 - 19
Multiple Choice AnswersConceptual

Item
31.
32.
33.
34.
35.
36.
37.
38.
39.
40.
41.
42.
43.
Ans.
d
c
b
d
d
c
b
c
a
c
d
d
b
Item
44.
45.
46.
47.
48.
49.
50.
51.
52.
53.
54.
55.
56.
Ans.
d
d
d
d
c
b
d
b
d
b
d
d
d
Item
57.
58.
59.
60.
61.
62.
63.
64.
65.
66.
67.
68.
69.
Ans.
d
a
d
c
a
b
d
a
b
d
b
c
b
Item
70.
71.
72.
73.
74.
75.
76.
77.
78.
79.
80.
81.
82.
Ans.
b
c
c
c
c
c
c
c
d
b
b
a
d
Item
83.
84.
85.
86.
87.
88.
89.
90.
91.
92.
93.
94.
95.
Ans.
Item
Ans.
Item
Ans.
c
a
d
d
d
c
b
b
a
c
c
d
a
96.
97.
98.
99.
100.
101.
102.
103.
104.
105.
106.
107.
108.
b
b
b
d
c
b
b
a
b
a
b
d
d
109.
110.
111.
112.
113.
114.
d
d
d
c
d
d
Solutions to those Multiple Choice questions for which the answer is none of these.
41. Total assets minus total liabilities.
52. Current assets less current liabilities.
55. Many answers are possible.
5 - 20
EXERCISES
Ex. 5-115Definitions.
Provide clear, concise answers for the following.
1. What are assets?
2. What are liabilities?
3. What is equity?
4. What are current liabilities?
5. Explain what working capital is and how it is computed.
6. What are intangible assets?
7. What are current assets?
Solution 5-115
1. Assets are resources controlled by the entity as a result of past events and from which future
economic benefits are expected to flow to the entity.
2. Liabilities are present obligations of an entity arising from past events, the settlement of which
is expected to result in an outflow from an entity of resources embodying economic benefits.
3. Equity is the residual interest in the assets of an entity after deducting all its liabilities.
4. Current liabilities are obligations that are expected to be settled in the normal operating cycle,
or one year, whichever is longer.
5. Working capital is the net amount of a companys relatively liquid resources. It is the excess of
total current assets over total current liabilities.
6. Intangible assets are economic resources or competitive advantages that lack physical
substance and have a high degree of uncertainty about the future benefits to be received.
They are not financial instruments.
7. Current assets are cash and other resources (future economic benefits) expected to be
converted to cash, sold, or consumed in one year or the operating cycle, whichever is longer.
5 - 21
Ex. 5-116Terminology.
In the space provided at right, write the word or phrase that is defined or indicated.
1. Obligations expected to be settled in the
next year or operating cycle.
1.____________________________________
2. Statement showing assets, liabilities, and

equity at a point in time.
2.____________________________________
3. Probable future outflows of economic

benefits.
3.____________________________________
4. Resources expected to be used, sold, or

converted to cash in one year or the
operating cycle, whichever is longer.
4.____________________________________
5. Tangible long-lived assets used in regular

operations.
5.____________________________________
6. Economic rights or competitive advantages

which lack physical substance.
6.____________________________________
7. Resources expected to provide future

economic benefits.
7.____________________________________
8. Residual interest in the net assets of an

entity.
8.____________________________________
Solution 5-116
1.
2.
3.
4.
Current liabilities.
Statement of financial position.
Liabilities.
Current assets.
5.
6.
7.
8.
Property, plant, and equipment.

Intangible assets.
Assets.
Equity.
Ex. 5-117Current assets.

Define current assets without using the word "asset."
Solution 5-117
Current assets are resources (future economic benefits) expected to be converted to cash, sold,
or consumed in one year or the operating cycle, whichever is longer.
5 - 22
Ex. 5-118Account classification.

a.
b.
c.
d.
e.
ASSETS
Investments
Plant and equipment
Intangibles
Other assets
Current assets
f.
g.
h.
i.
j.
k.
l.
EQUITY AND LIABILITIES

Share capital
Share premium
Accumulated comprehensive income
Retained earnings
Non-current liabilities
Current liabilities
Items excluded from statement of financial
position
Using the letters above, classify the following accounts according to the preferred and ordinary
statement of financial position presentation.
_____ 1. Bond sinking fund
_____ 2. Prepaid pension cost
_____ 3. Restricted retained earnings
_____ 4. Current maturity of long-term debt
_____ 5. Bonds payable (due in 3 years)
_____ 6. Unrealized gain on non-trading securities
_____ 7. Securities owned by another company which are collateral for that company's note
_____ 8. Trading securities
_____ 9. Inventory
_____ 10. Mortgage payable
_____ 11. Patents
_____ 12. Unearned rent revenue
Solution 5-118
1.
2.
3.
4.
a
d
i
k
5.
6.
7.
8.
j
h
l
e
9.
10.
11.
12.
e
j
c
k
5 - 23
Ex. 5-119Valuation of Statement of Financial Position Items.

Use the code letters listed below (a l) to indicate, for each statement of financial position item (1
13) listed below the usual valuation reported on the statement of financial position.
______ 1. Share capitalordinary
______ 7. Long-term bonds payable
______ 2. Prepaid expenses
______ 8. Land (in use)
______ 3. Property, plant, and equipment
______ 9. Land (future plant site)
______ 4. Accounts receivable
______ 10. Patents
______ 5. Copyrights
______ 11. Trading securities
______ 6. Inventory
______ 12. Accounts payable
a. Par value
b. Current cost of replacement
c. Amount payable when due, less unamortized discount or plus unamortized premium
d. Amount payable when due
e. Fair value at statement of financial position date
f.
Net realizable value
g. Lower-of-cost-or-net-realizable value
h. Original cost less accumulated amortization
i.
Original cost less accumulated depletion
j.
Original cost less accumulated depreciation
k. Historical cost
l.
Unexpired or unconsumed cost
Solution 5-119
1.
2.
3.
4.
a
l
j
f
5.
6.
7.
8.
h
g
c
k
9.
10.
11.
12.
k
h
e
d
5 - 24
Ex. 5-120Statement of financial position classifications.

Typical statement of financial position classifications are as follows.
a. Investments
g. Share Premium
b. Plant Assets
h. Retained Earnings
c. Intangible Assets
i. Non-Current Liabilities
d. Other Assets
j. Current Liabilities
e. Current Assets
k. Notes to Financial Statements
f. Share Capital
l. Not Reported on Statement of Financial
Position
Indicate by use of the above letters how each of the following items would be classified on a
statement of financial position prepared at December 31, 2015. If a contra account, or any
amount that is negative or opposite the normal balance, put parentheses around the letter
selected. A letter may be used more than once or not at all.
_____ 1. Accrued salaries and wages
_____ 2. Rental revenues for 3 months
collected in advance
_____ 3. Land used as plant site
_____ 4. Equity securities classified as
trading
_____ 5. Cash
_____ 6. Accrued interest payable due in
30 days
_____ 7. Share premiumpreference shares
_____ 8. Dividends in arrears on preference
shares
_____ 9. Petty cash fund
_____ 10. Ordinary shares
_____ 11. Bond indenture covenants
_____ 12. Allowance for doubtful accounts
_____ 13. Accumulated depreciation
______ 14. Goodwill

______ 15. 90 day notes payable
______ 16. Investment in bonds of another
company; will be held to 2019 maturity
______ 17. Land held for speculation
______ 18. Death of company president
______ 19. Current maturity of bonds payable
______ 20. Trade accounts payable
______21.
Preference shares ($10 par)
______22.
Prepaid rent for next 12 months
______ 23. Copyright

______ 24. Accumulated amortization, patents
______ 25. Earnings not distributed to
shareholders
5 - 25
Solution 5-120
1.
2.
3.
4.
5.
j
j
b
e
e
6.
7.
8.
9.
10.
j
g
k
e
f
11.
12.
13.
14.
15.
k
(e)
(b)
c
j
16.
17.
18.
19.
20.
a
a
l
j
j
21.
22.
23.
24.
25.
f
e
c
(c)
h

The various classifications listed below have been used in the past by Maris Company on its
statement of financial position. It asks your professional opinion concerning the appropriate
classification of each of the items 1-12 below.
a.
b.
c.
d.
e.
Investments
Plant and Equipment
Intangible Assets
Other Assets
Current Assets
f.
g.
h.
i.
Share Capital and Share Premium

Retained Earnings
Non-Current Liabilities
Current Liabilities
Indicate by letter how each of the following items should be classified. If an item need not be
reported on the statement of financial position, use the letter "X." A letter may be used more than
once or not at all. If an item can be classified in more than one category, choose the category
most favored by the authors of your textbook.
_____ 1. Employees' payroll deductions.
_____ 2. Cash in sinking fund.
_____ 3. Rent revenue collected in advance.
_____ 4. Equipment retired from use and held for sale.
_____ 5. Patents.
_____ 6. Payroll cash fund.
_____ 7. Accrued revenue on temporary investments.
_____ 8. Advances to salespersons.
_____ 9. Bank overdraft.
_____ 10. Salaries which company budget shows will be paid to employees within the next year.
_____ 11. Work in process.
_____ 12. Appropriation for bonded indebtedness.
5 - 26
Solution 5-121
1.
2.
3.
4.
i
a
i
d or e
5.
6.
7.
8.
c
e
e
e
9.
10.
11.
12.
i
x
e
g

The various classifications listed below have been used in the past by Hale Company on its
statement of financial position.
a.
b.
c.
d.
Investments
Plant and Equipment
Intangible Assets
Current Assets
e.
f.
g.
h.
Share Capital and Share Premium

Retained Earnings
Non-current Liabilities
Current Liabilities
Instructions
Indicate by letter how each of the items below should be classified at December 31, 2015. If an
item is not reported on the December 31, 2015 statement of financial position, use the letter "X"
for your answer. If the item is a contra account within the particular classification, place
parentheses around the letter. A letter may be used more than once or not at all.
Sample question and answer:
(d)
Allowance for doubtful accounts.
_____ 1. Customers' accounts with credit balances.

_____ 2. Bond sinking fund.
_____ 3. Salaries which the company's cash budget shows will be paid to employees in 2016.
_____ 4. Accumulated depreciation.
_____ 5. Appropriation for plant expansion.
_____ 6. Amortization of patents for 2015.
_____ 7. Deferred income taxes payable.
_____ 8. Trading securities.
_____ 9. Launching of Hales Internet retailing division in February, 2016.
_____ 10. Cash dividends declared on December 15, 2015 payable to shareholders on January
15, 2016.
5 - 27
Solution 5-122
1. h
2. a
3. x
4.
5.
6.
(b)
f
x
7.
8.
9.
g
d
x
10.
Ex. 5-123Statement of cash flows.

For each event listed below, select the appropriate category which describes the effect of the
event on a statement of cash flows:
a. Cash provided/used by operating activities.
b. Cash provided/used by investing activities.
c. Cash provided/used by financing activities.
d. Not a cash flow.
_____ 1. Payment on long-term debt
_____ 2. Issuance of bonds at a premium
_____ 3. Collection of accounts receivable
_____ 4. Cash dividends declared
_____ 5. Issuance of ordinary shares to acquire land
_____ 6. Sale of non-trading securities (long-term)
_____ 7. Payment of employees' wages
_____ 8. Issuance of share capitalordinary for cash
_____ 9. Payment of income taxes payable
_____ 10. Purchase of equipment
_____ 11. Purchase of treasury shares (ordinary)
_____ 12. Sale of real estate held as a long-term investment
Solution 5-123
1. c
2. c
3. a
4.
5.
6.
d
d
b
7.
8.
9.
a
c
a
10.
11.
12.
b
c
b
5 - 28
Ex. 5-124Statement of cash flows ratios.

Financial statements for Hilton Company are presented below:
Hilton Company
Statement of Financial Position
December 31, 2015
Assets
Buildings and equipment
Accumulated depreciation
buildings and equipment
Patents
Accounts receivable
Cash
$150,000
(50,000)
20,000
35,000
40,000
$195,000
Equity & Liabilities

Share capitalordinary
Retained earnings
Bonds payable
Accounts payable
$ 65,000
60,000
50,000
20,000
$195,000
Hilton Company
Statement of Cash Flows
For the Year Ended December 31, 2015
Cash flows from operating activities
Net income
Adjustments to reconcile net income to net cash
provided by operating activities:
Increase in accounts payable
Gain on sale of equipment
Amortization of patents
$45,000
$(16,000)
8,000
15,000
(6,000)
2,000
Cash flows from investing activities

Sale of equipment
Purchase of land
Purchase of buildings and equipment
Net cash used by investing activities
12,000
(25,000)
(48,000)
Cash flows from financing activities

Payment of cash dividend
Sale of bonds
Net cash provided by financing activities
(15,000)
40,000
Net increase in cash

Cash, January 1, 2015
Cash, December 31, 2015
3,000
48,000
(61,000)
25,000
12,000
28,000
$40,000
At the beginning of 2015, Accounts Payable amounted to $12,000 and Bonds Payable was
$10,000.
Instructions
Calculate the following for Hilton Company:
a. Current cash debt coverage
b. Cash debt coverage
c. Free cash flow

Solution 5-124
a. Current cash debt coverage

=
$48,000
$48,000
= = = 3.0 : 1
($12,000 + $20,000) 2
$16,000
b. Cash debt coverage

=
Average total liabilities
$48,000
$48,000
= = = 1.0 : 1
($22,000 + $70,000) 2
$46,000
c. Free cash flow = Net cash provided by operating activities

capital expenditures and dividends
= $48,000 *$73,000 $15,000 = $(40,000)
*$25,000 + $48,000
5 - 29
5 - 30
PROBLEMS
Pr. 5-125Statement of financial position presentation.
The following statement of financial position was prepared by the bookkeeper for Kraus Company
as of December 31, 2015.
Kraus Company
as of December 31, 2015
Investments
Equipment (net)
Patents
Inventories
Accounts receivable (net)
Cash
76,300
96,000
32,000
57,000
52,200
80,000
393,500
Equity
Accounts payable
215,500
100,000
78,000
393,500
The following additional information is provided:

1. Cash includes the cash surrender value of a life insurance policy 12,400, and a bank
overdraft of 2,500 has been deducted.
2. The net accounts receivable balance includes:
(a) accounts receivabledebit balances 60,000;
(b) accounts receivablecredit balances 4,000;
(c) allowance for doubtful accounts 3,800.
3. Inventories do not include goods costing 5,000 shipped out on consignment. Receivables of
5,000 were recorded on these goods.
4. Investments include investments in ordinary shares, trading 19,000 and non-trading
48,300, and franchises 9,000.
5. Equipment costing 5,000 with accumulated depreciation 4,000 is no longer used and is
held for sale. Accumulated depreciation on the other equipment is 40,000.
Instructions
Prepare a statement of financial position in good form (shareholders' equity details can be
omitted.)

Solution 5-125
Kraus Company
As of December 31, 2015
Assets
Investments
Non-trading securities
Cash surrender value of life insurance
48,300
12,400
Property, plant, and equipment

Equipment
Less: Accumulated depreciation
135,000
40,000
Intangible assets
Patents
Franchises
60,700
(5)
95,000
32,000
9,000
Current assets
*Equipment held for sale
Inventories
Accounts receivable
Less: Allowance for doubtful accounts
Trading securities
Cash
Total current assets
Total assets
55,000 (2)
3,800
41,000
1,000
62,000
(4)
(3)
51,200
19,000
70,100
(1)
203,300
400,000
Equity and Liabilities

Equity
Current liabilities
Accounts payable
Bank overdraft
Total current liabilities
Total liabilities
Total liabilities and equity
(1)
(2)
(3)
(4)
(5)
(6)
(80,000 12,400 + 2,500)

(60,000 5,000)
(57,000 + 5,000)
(5,000 4,000)
(96,000 + 40,000 5,000 + 4,000)
(78,000 + 4,000)
*An alternative is to show it as an other asset.
215,500
100,000
82,000 (6)
2,500
84,500
184,500
400,000
5 - 31
5 - 32
Pr. 5-126Statement of financial position presentation.

Given the following account information for Leong Corporation, prepare a statement of financial
position in report form for the company as of December 31, 2015. All accounts have normal
balances.
Equipment
Interest Expense
Interest Payable
Retained Earnings
Dividends
Land
Inventory
Bonds Payable
Notes Payable (due in 6 months)
Share CapitalOrdinary
Accumulated Depreciation - Equip.
Prepaid Advertising
Revenue
Buildings
Supplies
Taxes Payable
Utilities Expense
Advertising Expense
Salaries and Wages Expense
Salaries and Wages Payable
Accumulated Depr. - Buildings
Cash
40,000
2,400
600
?
50,400
157,320
102,000
78,000
24,400
60,000
10,000
5,000
351,400
80,400
1,860
3,000
1,320
1,560
53,040
900
15,000
40,000
8,000
5 - 33
Solution 5-126
Leong Corporation
December 31, 2015
Assets
Property, plant and equipment
Land
Buildings
Accumulated depreciation - buildings
Equipment
Accumulated depreciation -equipment
Total property, plant and equipment
Current assets
Inventory
Supplies
Prepaid advertising
Cash
Total current assets
Total assets
157,320
80,400
(15,000)
40,000
(10,000)
65,400
30,000
252,720
102,000
1,860
5,000
40,000
148,860
401,580
Equity & Liabilities

Equity
Share capital-ordinary
Retained earnings (285,080*- 50,400)
Total equity
Bonds payable
Current liabilities
Notes payable
Taxes payable
Salaries and wages payable
Interest payable
Total current liabilities
Total liabilities
Total equity & liabilities
*351,400 - 53,040 - 8,000 - 2,400 - 1,560 - 1,320
60,000
234,680
294,680
78,000
24,400
3,000
900
600
28,900
106,900
401,580
5 - 34
Pr. 5-127Statement of cash flows preparation.

Selected financial statement information and additional data for Stanislaus Co. is presented
below. Prepare a statement of cash flows for the year ending December 31, 2016
December 31
2015
2016
Land...................................................... 63,800
Equipment............................................ 504,000
Inventory............................................... 173,000
Accounts receivable (net).....................
84,000
Cash.....................................................
32,000
TOTAL....................................... 856,800
21,000
789,600
201,600
151,200
63,000
1,226,400
Share capitalordinary.......................... 420,000

Retained earnings.................................
67,200
Notes payable - Long-term................... 168,000
Notes payable - Short-term (trade).......
67,200
Accounts payable.................................
50,400
Accumulated depreciation.....................
84,000
TOTAL....................................... 856,800
487,200
205,800
302,400
29,400
86,000
115,600
1,226,400
Additional data for 2016:

1. Net income was 215,200.
2. Depreciation was 31,600.
3. Land was sold at its original cost.
4. Dividends of 76,600 were paid.
5. Equipment was purchased for 84,000 cash.
6. A long-term note for 201,600 was used to pay for an equipment purchase.
7. Ordinary shares were issued to pay a 67,200 long-term note payable.

Solution 5-127
Stanislaus Co.
For the year ended December 31, 2016
Net Income
Cash flow from operating activities
Increase in inventory
Decrease in short-term notes payable
Cash flow from investing activities
Purchase equipment
Sale of land
Cash flow from financing activities
Payment of cash dividend
Cash at beginning of year
Cash at end of the year
215,200
31,600
(67,200)
(28,600)
35,600
(37,800)
(66,400)
148,800
(84,000)
42,800
(41,200)
(76,600)
31,000
32,000
63,000
Noncash investing and financing activities

Payment of long-term note payable with issuance of 67,200 of ordinary shares
Long-term note issued as payment of equipment purchase, 201,600
5 - 35
5 - 36
Pr. 5-128Statement of cash flows preparation.

Selected financial statement information and additional data for Johnston Enterprises is
presented below. Prepare a statement of cash flows for the year ending December 31, 2016
Johnston Enterprises
Statement of Financial Position and Income Statement Data
December 31,
December 31,
2016
2015
Property, Plant, and Equipment
HK$1,241,000
HK$1,122,000
Less: Accumulated Depreciation
(476,000)
(442,000)
765,000
680,000
Current Assets:
Inventory
391,000
340,000
Accounts Receivable
238,000
306,000
Cash
153,000
119,000
Total Current Assets
782,000
765,000
Total Assets
HK$1,547,000
HK$1,445,000
Equity:
Share CapitalOrdinary
Retained Earnings
Total Equity
HK$ 510,000
374,000
884,000
HK$ 467,500
340,000
807,500
Non-Current Liabilities:
Bonds Payable
340,000
391,000
Current Liabilities:
Accounts Payable
Notes Payable
Income Taxes Payable
Total Current Liabilities
187,000
51,000
85,000
323,000
102,000
68,000
76,500
246,500
Total Liabilities
663,000
637,500
Total Liabilities & Equity
HK$1,547,000
HK$1,445,000
Sales Revenue
Less Cost of Goods Sold
Gross Profit
Expenses:
Salaries and Wages Expense
Interest Expense
Loss on Sale of Equipment
Income Before Taxes
Less Income Tax Expense
Net Income
HK$1,615,000
731,000
884,000
HK$1,513,000
731,000
782,000
153,000
391,000
34,000
17,000
289,000
119,000
HK$ 170,000
136,000
357,000
34,000
0
255,000
102,000
HK$ 153,000
Additional Information:
5 - 37
During the year, Johnston sold equipment with an original cost of HK$153,000 and accumulated
depreciation of HK$119,000 and purchased new equipment for HK$272,000.
5 - 38
Solution 5-128
Johnston Enterprises
For the Year Ended December 31, 2016
Net Income
HK$ 170,000
Cash flow from operating activities

HK$153,000
Loss on sale of equipment
17,000
Decrease in accounts receivable
68,000
Increase in inventory
(51,000)
85,000
Decrease in notes payable
(17,000)
Increase in tax payable
8,500
263,500
433,500
Cash flow from investing activities

Sale of equipment
Purchase of equipment
(255,000)
Cash flow from financing activities

Retirement of bonds payable
Issuance of ordinary shares
Payment of dividends
Net cash used by financing activities
Beginning cash
Cash at end of year
17,000
(272,000)
(51,000)
42,500
(136,000)**
(144,500)
34,000
119,000
HK$153,000
**Beginning R/E Net income Dividends Ending R/E

HK$340,000 HK$170,000 Dividends HK$374,000
Dividends HK$136,000

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CHAPTER 5

STATEMENT OF FINANCIAL POSITION AND

Test Bank for Intermediate Accounting: IFRS Edition, 2e

Statement of Financial Position and Statement of Cash Flows

True False AnswersConceptual

Test Bank for Intermediate Accounting: IFRS Edition, 2e

Which of the following is a limitation of the statement of financial position?

The statement of financial position contributes to financial reporting by providing a basis

Statement of Financial Position and Statement of Cash Flows

The statement of financial position

The net assets of a business are equal to

The correct order to present current assets is

Test Bank for Intermediate Accounting: IFRS Edition, 2e

Which of the following is a current asset?

Each of the following are an intangible asset except

Which of the following is not a long-term investment?

A generally accepted method of valuation is

Which item below is not a current liability?

Statement of Financial Position and Statement of Cash Flows

An example of an item which is not an element of working capital is

Non-current liabilities include

Which of the following should be excluded from long-term liabilities?

Treasury shares should be reported as a(n)

Which of the following should be reported for share capital?

Which of the following is not an acceptable major asset classification?

Test Bank for Intermediate Accounting: IFRS Edition, 2e

Fulton will report investments in its current assets section of

For Grimmett Company, the following information is available:

In Grimmetts statement of financial position, intangible assets should be reported at

Kohler Company owns the following investments:

Kohler will report securities in its long-term investments section of

For Randolph Company, the following information is available:

In Randolphs statement of financial position, intangible assets should be reported at

Statement of Financial Position and Statement of Cash Flows

Test Bank for Intermediate Accounting: IFRS Edition, 2e

I, VI, IV, II, V, III

Presented below are data for Antwerp Corp.

Statement of Financial Position and Statement of Cash Flows

Presented below are data for Bandkok Corp.

Equity at January 1, 2015 is

The statement of cash flows reports all of the following except

Test Bank for Intermediate Accounting: IFRS Edition, 2e

In preparing a statement of cash flows, which of the following transactions would be

Statement of Financial Position and Statement of Cash Flows

In a statement of cash flows, proceeds from issuing equity instruments should be

In preparing a statement of cash flows, cash flows from operating activities

Lohmeyer Corporation reports:

Test Bank for Intermediate Accounting: IFRS Edition, 2e

What is Keislers ending cash balance?

Harding Corporation reports the following information:

Harding should report cash provided by operating activities of

Sauder Corporation reports the following information:

Sauder should report cash provided by operating activities of

Statement of Financial Position and Statement of Cash Flows

Caroline, Inc. had the following transactions during 2015:

Caroline, Inc. had the following transactions during 2015:

What is Caroline, Inc.s net cash provided (used) by financing activities?

Current cash debt coverage is often used to assess

Test Bank for Intermediate Accounting: IFRS Edition, 2e

Packard Corporation reports the following information:

Packards cash debt coverage is

Packard Corporation reports the following information:

Statement of Financial Position and Statement of Cash Flows