Answer: a. it is a non-cash expense, so it needs to be added back to net income when using the indirect method.
Explanation: Depreciation is the measurement of the decline in value of assets. When using the indirect method, since net income is a starting point in measuring cash flows from operating activities, depreciation expenses must be added back to net income. Depreciation is a source of cash inflow because it is a tax-deductible non-cash expense as a result it provides a tax reduction benefit which increases cash flow.
Answer:
The journal entry should be:
Dr Merchandise Inventory account 50,000
Cr Retained Earnings account 50,000
Explanation:
Since Oscar's merchandise inventory was understated by $50,000 because of the previous inventory method (LIFO), when the new method, FIFO, starts to be used then the merchandise inventory must increase by $50,000 as well as retained earnings.
Merchandise inventory is an asset account and it increases, therefore it should be debited.
Retained earnings is an equity account and it increases, therefore it should be credited.
Answer:
15percent o 100 annually
Explanation:
opportunity cost =(115-100/100)*100
Answer:
A career is like a "building block" and a job is like "castle or a tower"
