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Problem 1: One effect on the accounting equation when a firm borrows money is that
a. liabilities decrease.
b. assets increase.
c. assets decrease.
d. stockholders' equity decreases.
Problem 2: Sunnyside Vacations has a $1,200 account receivable from John Smith. On September 18, John makes a partial payment of $1,100 to Sunnyside. The journal entry made on September 18 by Sunnyside to record this transaction includes
a. a debit to the Cash account of $1,150.
b. a credit to the Accounts Receivable account of $1,100.
c. a credit to the Accounts Receivable account of $1,050.
d. a debit to the Accounts Receivable account of $1,150.
Financial Statement Analysis and Preparation
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An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.
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.
This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited
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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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