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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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Carla and Eliza share income equally. For the current year, the partnership net income is $40,000. Carla made withdrawals of $12
sveticcg [70]

Answer:

$54,000

Explanation:

Eliza's share of net income = $40,000 ÷ 2

                                             = $20,000

Eliza made withdrawals = $21,000

Eliza capital = $55,000

Eliza’s capital account balance at the end of the year:

= Eliza capital - Eliza withdrawals + Net income share of Eliza

= $55,000 - $21,000 + $20,000

= $54,000

Therefore, the Eliza’s capital account balance at the end of the year is $54,000.

8 0
4 years ago
Which of these changes are planned and based on situations that are expected to arise?
babunello [35]
<span>..(B).. Exponential..</span>
5 0
4 years ago
Bookmark question for later Which of the following are NOT costs that are relevant to the "total cost to own" of a car? a. Fuel
harina [27]

The statement that are NOT costs that are relevant to the "total cost to own" of a car is: f. None of the above.

<h3>What is total cost?</h3>

Total cost is the cost generated or cost incurred for producing a product or the expenses incurred for owing a product such as car.

Total cost formula is:

Total cost=Fixed cost+ Variables cost

If a person own a car it is important to know that all the following are the total cost that will be relevant to the cost of owing a car are:

  • Fuel
  • Financing
  • Repair costs
  • Insurance
  • Maintenance

Inconclusion the statement that are NOT costs that are relevant to the "total cost to own" of a car is: f. None of the above.

Learn more about total cost here:brainly.com/question/5168855

7 0
3 years ago
Which answer is an example of a market?
Kobotan [32]

Answer:

the answer is "a garage sale sign"

Explanation:

to qualify any place or an space (as in online markets) as a market, the willingness of the sellers to sell is important. and the willingness of the buyers and the purchasing power.

in this question, a sign stating "garage sale" is a display of the seller's willingness to sell. also, it is an invitation for potential buyers.

4 0
3 years ago
Robertson, while a minor, contracted to borrow money from his father for a college education. his father mortgaged his home and
vodomira [7]

Answer:

Generally a minor cannot be held responsible for any contracts that they sign unless they involve basic necessities, e.g. food, clothes, shelter. But in this case, Robertson ratified the contract when he was already an adult (I guess he was an adult when he graduated as a dentist or during the next three years). Once Robertson ratified the contract, he cannot disaffirm it anymore.

3 0
3 years ago
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