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kiruha [24]
1 year ago
6

Cash flow ________ be negative before debt and equity infusions and ________ be negative after them.

Business
1 answer:
Eddi Din [679]1 year ago
7 0

Cash flow can be negative before debt and equity injections and must not be negative afterward.

The income statement recognizes income and expenses when cash is incurred, not when cash is actually exchanged. A cash flow statement records cash inflows and outflows when they actually occur.

The present value method calculates the expected monetary gain or loss from a project by discounting all expected future cash inflows and outflows to date using the hurdle rate.

Accounting receipts are pure receipts - expenses = receipts; cash flow is when cash actually changes hands, either coming in or going out. Recent cash flow should be used.

Learn more about Cash flow at

brainly.com/question/735261

#SPJ4

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During a concealment investigation, an investigator fails to recognize that an invoice had been forged. This represents a: a. no
Ivanshal [37]

Answer:

a. non-sampling risk.

Explanation:

  • A non-sampling risk includes all the audit risk other than the sample risk and is stated as the probability of getting to an incorrect conclusion in the site of having a correct sample. Examples include the  inappropriate audit procedures.
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6 0
3 years ago
__________ is a contra asset account representing the amount of accounts receivable that we do not expect to collect.
maw [93]

Answer:

Allowance for uncollectible accounts

Explanation:

This account is a contra asset account which says that the account receivable amount is not collected in near future

It is shown in the asset side of the balance sheet

Assets side

Current Assets

Accounts receivable                           XXXXX

Less: Allowance for doubtful debts   (XXXXX)

Net accounts receivable                       XXXXX

It is an estimated amount which is not to be paid by the customer in respect to goods delivered to them

The journal entry would be

Bad debt expense A/c Dr XXXXX

     To Allowance for uncollectible accounts A/c XXXXX

(Being the uncollected amount is recorded)

6 0
3 years ago
As you get closer to needing the money from an investment, what happens to your risk tolerance
Sedbober [7]

Risk tolerance gets lower and lower as you get closer to needing the money from your investment.

If you don't need the money for 50 years, you are more likely to take risks in the stock market or other higher risk investments in return for higher rewards. If you need the money tomorrow, you will not be willing to risk it all in the stock market because even though it <em>could </em>double, you might lose it all.

8 0
3 years ago
Given the following two potential locations to construct an urgent care, use incremental B/C ratio to determine which location,
White raven [17]

Answer:

The incremental benefit cost ratio is less than 1 therefore we must select site 1.

Explanation:

The incremental BCR can be determined using the following formula

\Delta BC_R = \frac{AW_B-AW_D-AW_M}{AW_i}

AW_C=1,000,000(A/P, 8% , 10)

⇒ AW_C= 1,000,000 \times \frac{0.08}{1-1.08^-^1^0}

⇒ AW_2=2,000,000(A/P, 8%, 20)

⇒ AW_2= 2,000,000 \times \frac{0.08}{1-1.08^-^2^0}

⇒AW_C_2 = $203,704.42

Incremental initial investment = 203,704.42 - 149,029.49

= $ 54,674.93

Incremental benefits = 580,000 - 520,000 = 60,000

Incremental O&M = 75,000 - 80,000 = - $ 5000

Incremental Disbenefits = 140,000 - 90,000 =$ 50,000

\Delta BC_R = \frac{60,000-50,000-(-5000)}{54,674.93} \\\\\Delta BC_R=0.2743

All solving using the present worth method also incremental benefit cost ratio comes out to be 0.2743.

The incremental benefit cost ratio is less than 1 therefore we must select site 1.

3 0
3 years ago
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