Question 1:

The following items were reported on the statement of financial positions and statement of comprehensive income for Natasha Narcissists:

Accounts payable, 30 June 2013 $88 000

Accounts payable, 30 June 2014 $99 000

Operating expenses for the financial year $999 000

How would the change in accounts payable be reported in the operating activities section of Hawkeye's statement of cash flows under the indirect method?

a) As a deduction from operating expenses

b) As an addition to total comprehensive income

c) As a deduction from total comprehensive income

d) As an addition to operating expenses.

Question 2:

All of the following are reasons that a company may buy-back shares, except:

a) If it needs the shares for its employees share bonus program

b) If the company decides to increase its long term investments

c) To buy out the ownership of shareholders

d) To increase the reported amount of earnings per share