DIRECT METHOD Flashcards
1
Q
Cash from Customers
A
Opening acc rec + sales - closing acc rec
2
Q
Cash paid suppliers
A
Opening acc payable + purchases - closing acc payable
3
Q
Cash paid other suppliers
A
Other expenses +- in/decrease prepayments +- in/decrease accruals
4
Q
Cash received as interest
A
Closing unearned IR + IR - opening balance IR
5
Q
Purchases
A
Closing inventory + COGS - opening inventory
6
Q
Cash paid employees
A
Opening wages payable + wages expense - Closing wages payable
7
Q
Debentures
A
Closing debentures + cash paid for debentures redemption - opening debentures
8
Q
Share issue
A
Closing share capital - opening share capital + Cash paid buying back
9
Q
Dividends paid
A
Opening retained profits +profit for the year - closing balance retained profit
