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Degger [83]
3 years ago
15

When using the indirect method to determine cash flows from operating activities, an increase in prepaid expenses should be repo

rted as:
a. Not reported.
b. A deduction from net income in determining cash flows from operating activities.
c. An investing ectivity.
d. An addition to the net income in determining cash flows from operating activities.
Business
1 answer:
Andrews [41]3 years ago
8 0

Answer:

b. A deduction from net income in determining cash flows from operating activities.

Explanation:

An increase in prepaid expenses is deducted from Net Income. The reason behind it very simple and no rocket science is there. Lets take Insurance as a prepaid expense. You Paid in-advance for Insurance, it increase your current asset that is Prepaid Insurance BUT at the same time cash went out of the Business.

I hope I made it clear to you. If you still have any queries, feel free to ask me.

Thanks!

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The dollar votes of consumers ultimately determine the composition of output and the allocation of resources in a market economy
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Answer:

Consumer Sovereignty

Explanation:

Consumer sovereignty in production refers to the controlling power of consumers and that the production of goods and services is determined by the consumers' demand.

In the given scenario, The dollar votes of consumers ultimately determine the composition of output and the allocation of resources in a market economy, and hence this statement best describes the concept of Consumer Sovereignty

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3 years ago
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4 0
2 years ago
During a presidential campaign, the incumbent argues that he should be reelected because nominal GDP grew by 12 percent during h
bearhunter [10]

Answer:

Grew by 2%

Explanation:

Given: nominal GDP =12% positive value cause it grew by 12% during these years.

              Population grew by 4%

              GDP deflator = 6% positive value cause it also grew by 6%

Question says we must find real GDP per person for the 4 year term that the president has served for so we will use the formula to calculate GDP Deflator to actually solve for Real GDP as we know the formula is GDP Deflator= (nominal GDP per person%)/(Real GDP per person%)x100

So we already have the nominal GDP and the GDP deflator therefore we substitute to the above formula:

6% = (12%)/ (Real GDP per person percentage) x100, and now we solve for Real GDP per person%

Therefore we multiply both sides with Real GDP percentage and get:

Real GDP per person %( 6%) = 12% and then we divide both sides with 6%,

Therefore Real GDP is 2% so we also see that real GDP has actual grown by 2% because the GDP deflator grew instead of decreasing where nominal GDP is also positive so if we have a fraction where an answer is positive we know both fraction values must be positive pus if the GDP deflator increases both nominal and Real GDP increase and that’s the relationship they have.

4 0
3 years ago
Hallie has an annual salary of 58000 and her company pays her twice a month. what is the gross income per paycheck that Hallie r
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Answer:

<u>$2416.67</u>

Explanation:

A_P-E_X

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