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Julli [10]
3 years ago
5

Provide a brief explanation of why depreciation of capital assets is considered in determining potential net income from an inve

stment, but not included in determining the net cash flow of an investment.
Business
1 answer:
lisabon 2012 [21]3 years ago
6 0

Answer:

Depreciation is the allocation of the cost of capital assets over their useful life. Since capital assets are held for use in more than one accounting period.

Explanation:

Depreciation is an accounting method for allocating the cost of a tangible asset over time.

Depreciation is found on the income statement, balance sheet, and cash flow statement. It can thus have a big impact on a company’s financial performance overall.

Ultimately, depreciation does not negatively affect the operating cash flow of the business.

You might be interested in
the financial agency that sets monetary policy is , the financial agency that insures bank deposits is
lozanna [386]
The Federal Reserve System, often referred to as the Federal Reserve<span> or simply "the Fed," is the central bank of the United States. It was created by the Congress to provide the nation with a safer, more flexible, and more stable monetary and financial system.


I hope my answer has come to your help. God bless and have a nice day ahead!
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6 0
3 years ago
You are considering an investment in a startup that will cost $100,000 but you will receive a cash inflow of $25,000 every year
bulgar [2K]

Answer:

Simple payback is 4 years

Total discounted Payback is more than the 5 years which is the payback cutoff period.

Explanation:

Payback period is the time period in which the project recovers the initial cost incurred. Lower the payback period the more beneficial will be the project.

Simple payback = $100,000 / $25,000 = 4 years

Discounted Payback

Discounted payback is calculated by using the present value of future cash flows.

Total discounted cash flows = 22935.78 + 21042.0 + 19304.59 + 17710.63 + 16248.28 = 97,241.28

As sum of all cash flows are less than the initial investment so, total discounted Payback is more than the 5 years which is the payback cutoff period.

8 0
2 years ago
If sales are $1,150,000 in 2016 and this represents a 15% increase over sales in 2015, what were sales in 2015?
frutty [35]
Take $1,150,000 multiply by 15% to get the money increase between 1 years which is $172500 then take $1,150,000 subtract by $172,500 to get the final sales in 2015 which is $977,500
5 0
3 years ago
2. What is a stock exchange?
Arlecino [84]

Answer: A stock exchange, share market or <em>Bourse </em>is a place where people meet to buy and sell shares of company stock. Some stock exchanges are real places, like the <em>New York Stock Exchange</em>, others are virtual places <em>the NASDAQ.</em>

Explanation:

5 0
3 years ago
Waupaca Company establishes a $440 petty cash fund on September 9. On September 30, the fund shows $193 in cash along with recei
exis [7]

Answer:

petty cash fund    440 debit

         cash                           440 credit

--stablishment of the fund--

freight-in                           46 debit

postage expenses           78 debit

miscellaneous expenses 111 debit

cash shortage loss            12 debit

                   Cash                               247 credit

--reimbursement of the fund--

petty cash fund      50 debit

                    Cash                     50 credit

--incerase of the fund to 490--

Explanation:

The petty fund will be stablish using cash, so we decrease cash and create the petty fund.

Then, the expenditures will be against cash, so we don't have to use the petty fund account.

Lastly, to increase the fund we take from the cash account the 50 dollars increase.

5 0
3 years ago
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