The Money Available to a Household Over and Above That

question 106

Multiple Choice

The money available to a household over and above that required for a comfortable standard of living is termed:

• A) diversion income.
• B) discretionary income.
• C) consumer income.
• D) disposable income.

Recognize the concepts of partnership liquidation and capital deficiency.

Grasp the mutual agency principle and its significance in partnerships.

Understand partnership agreements and their binding nature.

Calculate partners' share of income or loss based on partnership agreements.

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Definitions:

Investing Cash Flow

Cash inflows and outflows related to transactions involving the acquisition and disposal of long-term assets and investments not included in cash equivalents.

AASB 107

An Australian accounting standard that specifies how the movements in cash and cash equivalents should be presented in the statement of cash flows.

Direct Method

A way to present the cash flow statement, showing actual cash flows from operating activities instead of adjusting net income for accruals.

Operating Activities

The principal revenue-producing activities of an entity and other activities that are not investing or financing activities.