Questions from Financial Accounting

Q: Why are changes in inventory balances not shown in the statement of

Why are changes in inventory balances not shown in the statement of cash flows when the direct method is used in presenting the cash flows from operating activities?

Q: Why not simply add a fourth part to the three-part

Why not simply add a fourth part to the three-part consolidation worksheet to permit preparation of a consolidated cash flow statement?

Q: Why are dividend payments to noncontrolling shareholders treated as an outflow of

Why are dividend payments to noncontrolling shareholders treated as an outflow of cash in the consolidated cash flow statement but not included as dividends paid in the consolidated retained earnings...

Q: Why are payments to suppliers not shown in the statement of cash

Why are payments to suppliers not shown in the statement of cash flows when the indirect method is used in presenting cash flows from operating activities?

Q: Differentiate between a foreign transaction and a foreign currency transaction. Give

Differentiate between a foreign transaction and a foreign currency transaction. Give an example of each.

Q: What types of economic factors affect currency exchange rates? Give an

What types of economic factors affect currency exchange rates? Give an example of a change in an economic factor that results in a weakening of the local currency unit versus a foreign currency unit....

Q: How is an increase in inventory included in the amounts reported as

How is an increase in inventory included in the amounts reported as cash flows from operating activities under (a) the indirect method and (b) the direct method?

Q: Explain the difference between indirect and direct exchange rates.

Explain the difference between indirect and direct exchange rates.

Q: How are dividends declared by an acquired company prior to the date

How are dividends declared by an acquired company prior to the date of a midyear acquisition treated in the consolidated financial statements?

Q: How do the consolidation entries at the end of the year change

How do the consolidation entries at the end of the year change when an acquisition occurs at midyear rather than at the beginning of the year?