Authentic Exposure Company Had the Following Transactions That Took Place

question 109

Short Answer

Authentic Exposure Company had the following transactions that took place during the year:
I) Paid amount owing to suppliers $2,750.
II) Purchased new equipment for $5,000 by signing a long-term note payable.
III) Purchased a patent and paid $15,000 cash for the asset.
How what is the total effect of these transactions on free cash flow?

Identify the role and importance of segregation of duties in internal control systems.

Understand the use of electronic funds transfers and its impact on internal control procedures.

Recognize the importance of external auditors and audit committees in reviewing and ensuring the adequacy of internal control systems.

Understand detector controls and their role in identifying fraudulent activities.

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Definitions:

Security Issues

Security Issues refer to the new issuance of stocks or bonds by a company in order to raise capital from investors in the public or private markets.

Stock Exchange

Stock Exchange is a regulated marketplace where securities, such as stocks and bonds, are bought and sold by participants.

Listing

The act of registering a company's shares on a stock exchange, enabling public trading.

Free Advertising

Marketing exposure a company gains without incurring any direct expense, often through word-of-mouth or viral content.