BUS 475 Capstone Final Examination Part 2 2017 Questions and Answers
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38. International Financial Reporting St<strong>and</strong>ards (IFRS):<br />
• implies that receivables with different characteristics should be reported separately.<br />
• implies that receivables with different characteristics should be reported as one un-segregated amount.<br />
• requires that receivables with different characteristics should be reported as one un-segregated amount.<br />
• requires that receivables with different characteristics should be reported separately.<br />
39. Assume that the Fitzgerald Corporation uses the indirect method to depict cash flows. Indicate where, if at all, accounts<br />
receivable collected would be classified on the statement of cash flows.<br />
• Does not represent a cash flow.<br />
• Operating activities section.<br />
• Financing activities section.<br />
• Investing activities section.<br />
40. Shaw Industries, a giant carpet manufacturer, increases its control over raw materials by producing much of its own<br />
polypropylene fiber, a key input to its manufacturing process. This is an example of _______________.<br />
• using related diversification to achieve value by integrating vertically in order to acquire market power<br />
• using related diversification to achieve value by leveraging core competencies to achieve economies of scope<br />
• using related diversification to achieve value by pooling negotiating power to achieve market power<br />
• using related diversification to achieve value by integrating vertically in order to attain economies of scope<br />
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