Answer: B. reduces reported net income of the period but does not involve an outflow of cash for that period.
Explanation:
Depreciation is the wear and tear of an asset due to the use of the asset. When an asset is depreciated, such an asset is eventually sold at a scrap value.
The statement of cash flows (indirect method) reports depreciation expense as an addition to net income because depreciation reduces reported net income of the period but does not involve an outflow of cash for that period.
Answer:
$24,681.41
Explanation:
In this question, we use the present value formula which is shown in the spreadsheet.
The NPER reflected the time period.
Provided that,
Future value = $50,000
Rate of interest = 4%
NPER = 18 years
The formula is presented below:
= -PV(Rate;NPER;PMT;FV;type)
So, after solving this, the answer would be $24,681.41
Answer:
A. positive cash flow of $ 20 comma 900 from investing activities
Explanation:
book value - sales price = loss on sale
30,900 - sales price = 10,000
30,900 - 10,000 = sales price
sales price = 20,900
Assumming the purchase was on cash, it will be disclosure as cash generated from investing activities for 20,900
The reason is that cashflow do not focus on the gain or loss from the sale. It focus on the cash movements and this sale involve a cashinflow of 20,900
Answer:
Status Symbols
Explanation:
According to Oxford dictionary; a status symbol is "a possession that is taken to indicate a person's wealth or high social or professional status."
Hence status Symbols are external displays of the possessors' wealth and social status. These goods can not be possessed by people who do not belong to that social status or profession.
Answer:
The answer is: B) An inflow of $12,000
Explanation:
Croft Company's cash flow should include the total cash inflow (the company received money) of $12,000. Even if the company bought the land the day before, paying the $10,000 yesterday, the cash flows are independent one from another. It should have recorded the outflow of $10,000 "yesterday".
