If 500 Units of Supplies Are Consumed When Output Is

question 24

Multiple Choice

If 500 units of supplies are consumed when output is at its high of 200, and 300 supply units are consumed during the low month when 150 units of output were produced, the variable component using the high/low method is

• A) 2.00
• B) 2.50
• C) 3.33
• D) 4.00
• E) None of the above

Distinguish between cash flows from operating activities and other adjustments.

Recognize the effect of accounts receivable, inventory, and accounts payable changes on cash flow.

Calculate net cash flow given a set of transactions.

Understand the final steps in preparing a statement of cash flows, including adjustments and listing non-cash activities.

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Definitions:

Amortised Cost

The amount at which financial assets or liabilities are measured in the balance sheet after the deduction of principal payments and plus or minus the cumulative amortization of any difference between the initial amount recognized and the maturity amount.

Effective Interest Rate

The true cost of borrowing that includes all fees and compounding of interest, expressed as an annual rate.

Fair Value

An approximation of the cost at which a liability or asset might be traded between informed, consenting parties in a fair transaction.

AASB 16

The Australian Accounting Standards Board standard concerning leases, requiring lessees to recognize assets and liabilities for most leases.