Answer:
Which non-cash expense is added back to the net profit in the indirect method of preparing a cash flow statement? DEPRECIATION
The indirect method of preparing a cash flow statement adds a non-cash expense, such as DEPRECIATION and or AMORTIZATION, to the net profit.
Explanation:
Cash flow statement is a statement of account or financial statement prepared by firms or organisations that shows how money comes or flow into a company. It also shows the amount of money that a company receives from sales of their goods and services.
Cash flow statement also shows us the money invested my the company in outside ventures which is used for generating revenues for the company.
There are two methods of preparing Cash flow statements
a. Indirect method.
b. Direct method
The indirect method of preparing a cash flow statement involves stating the net income of the firm and then adding back non cash expenses such as Depreciation, Amortization back to the net profit. After which the determination of the actual inflow or outflow of cash from firm in carried out.
Answer:
60%
Explanation:
Contribution margin ratio is calculated by dividing the contribution margin amount by sales.
Contribution margin is sales less variable cost to produce a product.
Sale price 150
Variable cost (60)
Contribution margin 90
Contribution margin ratio: 90 / 150 = 60%
Answer:
False.
Explanation:
Financial statements are a representation of the financial position of a business entity at any given point in time.
The statements of cash receipts and disbursements meets the GAAP requirements of accrual accounting because this is the basis for which other financial statements are formed. For example if we receive a product from a vendor and issue an invoice to him. The invoice represents an unpaid accrual (account payable) and will go into other financial statements as a liability against the business.
So the statement above is false.
"It improves organization fit because current employees understand the company's culture" is an advantage of internal recruitment.
<u>Option: C</u>
<u>Explanation:</u>
Recruitment are of basically two types on the basis of staff location like internal and external. Each firm is more comfortable to recruit departmental candidate because the current staff is well aware about the firm atmosphere.
This helps to save time of training to them, better fluency in work, trust factors, etc. Although external recruitment is also need to invite fresh talent with more energy and enthusiasm towards work profile, thus to train them and bring on specific track, training and meetings are needed to held.
