CH14 IMC 0.0 / 5 ? Business Studies & EconomicsCH14All LevelsAll boards Created by: gracerileyxCreated on: 10-03-21 19:06 72638109154 Across 1. A company is a parent of another company (subsidiary) if holds majority of voting rights. over 50%. (5, 8) 4. Certain that a customer is not going to pay, deemed 'bad debt'. Written off as an expense. (3, 4) 7. Occurs when either the contractual rights to the cash flows of the asset have expired, or the financial asset has been transferred (sold) (13) 8. New inventory purchases are sold first leaving old items in year end inventory (4) 10. net income + non cash charges (dep) - investment in fixed capital - investment in working capital + net interest payment (4) Down 2. Long term assets (typically over 1 year). Can be intangible, tangible and investments. Money spent on NCA's is referred as capital expenditure. (3, 7, 6) 3. 'free shares', no new capital raised, taken from the share premium reserve (5, 5, 5) 5. Recognise an uncertain fall in amount of asset. Charged as expense on income statement. Types: Provision for doubtful debt, provision for depreciation, provisions for unrealised profit on stock. (10) 6. Has to be properly prepared and give a true and fair view. If conditions met, then auditor issues a clean audit report. If not, then the auditor will 'qualify' the audit report. (8, 6) 9. Old inventory sold first, new items left in year end (4)
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