FAR Financial Reporting

Question 1

When can offset of assets/liabilities be applied?

Answer 1

a) Each of the 2 parties owes the other determinable amounts
b) The reporting party has the right to set off the amount owed with the amount owed by the other party
c) The reporting entity intends to set off
d) The right of setoff is enforceable at law

Question 2

CFS: Net cash provided by operating activities

Answer 2

• Gain (-)/loss (+)of sale of equipment
• Amortization of bond discount (+), as classified as interest expense (+)