Answer:
Annual maintenance on its equipment = Expensed
Remodelling of offices = Capitalised and depreciated.
Rearrangement of the shipping and receiving area = Capitalised and depreciated.
Addition of a security system = Capitalised and depreciated.
Explanation:
Annual maintenance on its equipment = $5,400 ( This is a normal maintenance bill and can be entirely expensed in the year it occurs.)
Remodelling of offices = $22,000 ( This is a part of the transformation process and should be capitalised and depreciated accordingly.)
Rearrangement of the shipping and receiving area = $35,000 (Since this is a reorganisation that would increase efficiency, it should be capitalised and depreciated.)
Addition of a security system = $25,000 ( Since this is an addition of asset, it should be capitalised and depreciated.)
Answer:
1. Depreciation or Amortization of Assets
2.Profit or Loss on sale of Assets
Explanation:
Operating Cash Flow is very different to Net Income. The earlier represent cash movement and the latter represent profit movement.Cash and profit literally are different.
So in the profit calculation you would find some non-cash items that include estimate of depreciation expense or amortization cost of intangible assets or a profit or loss on sale of a PPE item.
Whereas in Operating Cash Flow determination only cash items are considered and all non-cash items are removed from profit of the year to reach an amount of Operating Cash Flow.
The word "produce" involves the way the product is made and also the materials used. For this item, I would go with the third choice, "Marco uses locally harvested wood from a sustainable tree farm to make his products". This describes the materials used.
In case collected cash from a customer is for services that will be performed in the next accounting period the cash flow from operating activities will increase.
The cash flow from operating activities will increase cash flow in the period of receipt itself as it will result in an increase in the cash balance of the organization In case collected cash from a customer is for services that will be performed in the next accounting period.
If the balance of an asset will increase, cash float from operations will be lower. If the stability of an asset decreases, cash flow from operations will boom. If the balance of liability will increase, cash flows with the flow from operations will grow. If the balance of a liability decreases, cash flows with the flow from operations will decrease.
An accounting period, in bookkeeping, is the length with reference to which control accounts and economic statements are organized. In management accounting, the accounting length varies extensively and is decided with the aid of management. monthly accounting durations are common.
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Answer:
Measured over equal time periods.
Explanation:
To get an understanding of the <u>rate</u> of return you first need to lay down a period of time that you can use as a baseline when comparing the return of each investment.
