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:
A
Explanation:
mortgage interest is deductible on a primary home.
Answer:
A) Jennifer will experience negative externalities.
Explanation:
Externalities are essentially just the consequences of activities on unrelated third parties. There can either be positive or negative.
Jennifer being a serious student gives her a private benefit, but it also has a positive consequence for society as a whole (educational benefits). That would be considered a positive externality.
But with the question of the living situation - it would lead to a negative externality for Jennifer as the noise and distractions would negatively impact her studying.
Answer: the options are listed below.
A. 18.45%
B. 17.67%
C. 23%
D. 19.76%
The correct option is D. 19.76%.
Explanation:
σ2p = (0.402)(0.352) + (0.602)(0.15)2 + (2)(0.4)(0.6)(0.35)(0.15)(0.45)
σ2p = 0.039046
σp = 19.76%
Answer:
Helmut's basis at year-end is $3,900.
Explanation:
Beginning Basis = $2,000
Add: January 1 Liabilities at the rate of 10% = $20,000 × 10% = $2,000
Add: Increase in liabilities by the rate of 10% = $5,000 × 10% = $500
Less: Loss incurred at the rate of 10% = ($6,000 × 10%) = $600
Basis at the end of the year = $2,000 + $2,000 + $500 - $600
Basis at the end of the year = $3,900.