Use the Following Statement of Financial Position and Statement of Comprehensive

question 331

Multiple Choice

Use the following statement of financial position and statement of comprehensive income What is the net cash flow from financing activities for 2018?

• A) $260 cash outflow
• B) $325 cash outflow
• C) $800 cash inflow
• D) $1,220 cash inflow
• E) $1,860 cash inflow

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Definitions:

Impairment

A reduction in the recoverable value of a fixed asset or goodwill below its carrying amount on the balance sheet.

Dividends

Dividends are a portion of a company's earnings that are distributed to its shareholders as a reward for their investment.

Impairment Loss

A charge against earnings representing the amount by which the carrying amount of an asset exceeds its recoverable amount.

Goodwill

An intangible asset that arises when a company acquires another business for more than the fair value of its net tangible and identifiable intangible assets.