The Following Information Was Extracted from the Records of Ustinof $\blacktriangleright$

question 12

Multiple Choice

The following information was extracted from the records of Ustinof Limited
$\blacktriangleright$ Opening balance of Equipment, $360 000
$\blacktriangleright$ Closing balance of Equipment, $400 000
$\blacktriangleright$ Cost of new Equipment, $80 000
$\blacktriangleright$ Proceeds from sale of Equipment, $6000 (Cost $40 000; Carrying amount $10 000)
The total cash flows from investing activities is determined as

• A) $40 000 cash outflow
• B) $74 000 cash outflow
• C) $76 000 cash outflow
• D) $80 000 cash outflow.

Learn how monetary assets from foreign currency transactions are reported.

Understand the concept of noncontrolling (minority) interest in a subsidiary.

Know the consolidation procedures for wholly and partially owned subsidiaries.

Grasp how foreign translation gains or losses are treated under the current rate method.

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Definitions:

Purchase Cost

The total amount expended to acquire a good or service, including the item's price and additional charges related to procurement.

Accrued Interest

Interest that has been incurred but not yet paid, representing the cost of borrowing money over a period of time.

Commission

A fee paid for services, usually a percentage of the sale made or a transaction completed.

Sale Received

The revenue or income received from completed sales transactions.