Question 31

What is the cost of the PPE when it is acquired on a cash basis

Cash price equivalent
Invoice price minus discount
Present value
None of the above

Question 32
What is the cost of the PPE when it is acquired on account
 Cash price equivalent
Invoice price minus discount
Present value
None of the above

Question 33
It is the estimated net amount currently obtainable if the asset is at the end of the useful life.
Depreciable amount
Residual value
Useful life
None of the above

Question 34
Assistance by government in the form of transfer of resources to an entity in return for part or future
compliance with certain conditions relating to the operating activities of the entity.
Government grants
Government expense
Government assistance
None of the above

Question 35
Star Company provided the following data for the preparation of statement of cash flows for the current
year using the direct method:
Cash balance, beginning 1,500,000
Cash paid to purchase inventory 7,800,000
Cash received from sale of trading securities 2,500,000
Cash paid for interest 450,000
Cash paid to repay a loan 1,000,000
Cash collected from customers 10,000,000
Cash received from issuance of ordinary shares 1,200,000
Cash paid for dividend 2,000,000
Cash paid for income taxes 1,350,000
Cash paid to purchase trading securities 1,000,000
What amount should be reported as net cash provided by operating activities?
1,900,000
2,900,000

Question 36
Star Company provided the following data for the preparation of statement of cash flows for the current
year using the direct method:
Cash balance, beginning 1,500,000
Cash paid to purchase inventory 7,800,000
Cash received from sale of trading securities 2,500,000
Cash paid for interest 450,000
Cash paid to repay a loan 1,000,000
Cash collected from customers 10,000,000
Cash received from issuance of ordinary shares 1,200,000
Cash paid for dividend 2,000,000
Cash paid for income taxes 1,350,000
Cash paid to purchase trading securities 1,000,000
What amount should be reported as net cash used in financing activities?
3,000,000
2,000,000
1,800,000
4,200,000

Question 37
Star Company provided the following data for the preparation of statement of cash flows for the current
year using the direct method:
Cash balance, beginning 1,500,000
Cash paid to purchase inventory 7,800,000
Cash received from sale of trading securities 2,500,000
Cash paid for interest 450,000
Cash paid to repay a loan 1,000,000
Cash collected from customers 10,000,000
Cash received from issuance of ordinary shares 1,200,000
Cash paid for dividend 2,000,000
Cash paid for income taxes 1,350,000
Cash paid to purchase trading securities 1,000,000
What amount should be reported as cash balance at year-end?
3,400,000
1,600,000
1,400,000
2,400,000

Question 38
Fragile Company used the direct method tom prepare the statement of cash flows. The entity had the
following cash flows during the current year:
Cash receipts from issuance of ordinary shares 4,000,000
Cash receipts from customers 2,000,000
Cash receipts from dividends 300,000
Cash receipts from repayment of loan made to another entity 2,200,000
Cash payments for wages and other operating expenses 1,200,000
Cash payments for insurance 100,000
Cash payments for dividends 200,000
Cash payments for taxes 400,000
Cash payment to purchase land 800,000
Cash balance – beginning 3,500,000
What amount should be reported as net cash provided by operating activities?
600,000
400,000
300,000
200,000

Question 39
Fragile Company used the direct method tom prepare the statement of cash flows. The entity had the
following cash flows during the current year:
Cash receipts from issuance of ordinary shares 4,000,000
Cash receipts from customers 2,000,000
Cash receipts from dividends 300,000
Cash receipts from repayment of loan made to another entity 2,200,000
Cash payments for wages and other operating expenses 1,200,000
Cash payments for insurance 100,000
Cash payments for dividends 200,000
Cash payments for taxes 400,000
Cash payment to purchase land 800,000
Cash balance – beginning 3,500,000
What amount should be reported as net cash provided by investing activities?
2,200,000
1,400,000

Question 40
Fragile Company used the direct method tom prepare the statement of cash flows. The entity had the
following cash flows during the current year:
Cash receipts from issuance of ordinary shares 4,000,000
Cash receipts from customers 2,000,000
Cash receipts from dividends 300,000
Cash receipts from repayment of loan made to another entity 2,200,000
Cash payments for wages and other operating expenses 1,200,000
Cash payments for insurance 100,000
Cash payments for dividends 200,000
Cash payments for taxes 400,000
Cash payment to purchase land 800,000
Cash balance – beginning 3,500,000
What amount should be reported as net cash provided by financing activities?
4,000,000
6,000,000
3,800,000
6,200,000