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Problem 1: It is a concept which states that the business is separate and distinct from the owners.
a. Going concern
b. Business Entity theory
c. Substance over Form
d. Materiality
Problem 2: When a partner invests assets other than cash into a partnership, these assets should be recorded on the balance sheet at?
a. Carrying value
b. Original cost
c. Fair market value
d. Historical cost
Problem 3: All of the following are true for both general and limited partnerships except
a. Both are easily dissolved.
b. Both must have at least one general partner.
c. All partners are liable for all debts of the firm.
d. All partners have the right to share in the profits of the business.
Financial Statement Analysis and Preparation
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Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.
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T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .
Computation of Free Cash Flow
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