Answer:
The correct answer is b. In the indirect method statement, the period's depreciation is added to net income because it is a source of cash
Explanation:
Indirect method make adjustment to reconcile the net income to cash. It depends on the account if it is added or subtracted to net income.
We are going to analyze the options
a. The operating section of the indirect method starts with the net income of the period TRUE
b. In the indirect method statement, the period's depreciation is added to net income because it is a source of cash
FALSE, depreciation is not a source of cash
c. Interest payments are included in the operating section of the direct method statement
TRUE
d. The investing section of the direct method statement for a period is identical to the investing section of the indirect method statement for the same period TRUE
Answer:
Check the following explanation.
Explanation:
Ans a - Aggregate demand will increase by $150.
Ans b - Aggregate supply will increase by $50 in the first year.
Ans c - The aggregate demand impact is bigger.
Ans d - If the tax reduction is permanent then the aggregate demand and aggregate supply will be equal in 3 years.
Ans e - The aggregate demand increases by 120. The aggregate supply increases by 20. The aggregate demand impact is bigger. If the tax reduction is permanent then the aggregate demand and aggregate supply will be equal in 6 years.
Answer:
Explanation:
Present value is calculated as the discounted sum of either a fixed amount or a series of payments in the future, at a given interest rates.
For example, at an interest of 5%, $100 in 10 years will be valued at $100 / 1.05^10 = $61.39 today
Answer:
Being On Time.
Respects and Meets Deadlines.
Detail Oriented and Takes Initiative. ...
Supports Peers and is Loyal.
