Homework Answers
Income tax is the amount of taxable income which is reduced from the net income available for the shareholders and that Portion is paid to the revenue authority reducing the cash inflow as it involves the outflow of cash, so 1st option is incorrect.
Further tax depreciation is the depreciation for the tax calculation purpose which is reduced from the gross income to arrive the net taxable income, depreciation is a non cash expenses as it does not involve outflow of casb, so this option is also incorrect.
Further all sales does not immediately converted in cash , credit sales required the inflow of money at a later dater and some receivable can also become bad so immediate cash inflow is not possible in every sales so this option is also incorrect.
Finally, the residual value is the salvage value of the assets which could be realise at the selling point of the assets when it's useful life is completed, this salvage value will involve inflow of cash at the time of sale of assets.
Thus the correct Option is-------------D i e Residual value of an asset is inflow for a project.
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Which of the following statements is true? Income tax is a cash inflow Tax depreciation is...
Which of the following statements is true about depreciation and cash flows? (a)Depreciation does not affect...
Which of the following statements is true about depreciation and cash flows? (a)Depreciation does not affect cash flow, and therefore must be added back to pre-tax income (b)Depreciation is a cash outflow that reduces accounting income (c) Accelerated depreciation methods will increase a project’s net present value (d)Accelerated depreciation methods will increase cash outflows closer to present
With respect to financial statements, which of the following statements is true of depreciation? With respect...
With respect to financial statements, which of the following
statements is true of depreciation?
With respect to financial statements, which of the following statements is true of depreciation? Depreciation can be taken beyond the residual value of the asset. O Land is depreciated on a 25-year schedule. Accumulated depreciation is credited below the referenced asset. The residual value of the asset is determined by the government.
which of the following statements is true regarding Depreciation? A.) In some instances it is acceptable...
which of the following statements is true regarding Depreciation? A.) In some instances it is acceptable to depreciate an asset below the slavage value. B.) In the declining balance method, subtract the salvage value from the cost of the asset and multiply the depreciate rate times that depreciable base. C.) When recording depreciation expense, credit the asset account dorectly. D.) The book value of an asset is the cost of the asset minus accumulated depreciation.
(Appendix 11.1) Depreciation for Financial Statements and Income Tax Purposes Dinkle Company purchased equipment for $50,000....
(Appendix 11.1) Depreciation for Financial Statements and Income Tax Purposes Dinkle Company purchased equipment for $50,000. The equipment has an estimated residual value of $5,000 and an expected useful life of 10 years. Dinkle uses straight-line depreciation for its financial statements. Required: What is the difference between the company's income before taxes reported on its financial statements and the taxable income reported on its tax return in each of the first 2 years of the asset's life if the asset...
1. Working capital needed for a new project is treated: a. as a cash inflow...
1. Working capital needed for a new project is treated: a. as a cash inflow now and as a cash outflow when the project ends. b. as a cash outflow now and as a cash inflow when the project ends. c. only as a cash outflow now. 2. Which of the following is not an example of a cash outflow for a proposed machine purchase? a. Salvage value at the end of its useful life b. Initial investment (cost)...
Classifying inflows and outflows of cash Classify each of the following items as an inflow ()...
Classifying inflows and outflows of cash Classify each of the following items as an inflow () or an outflow (O) of cash, or neither (N) ltem Cash Balance Accounts payable Notes payable Long-term debt Inventory Fixed assets Change (S) +1,760 + 870 +1,120 + 890 770 +1,080 Change (S) Item - 330 - 1,230 +1,550 + 910 +180 +330 Accounts receivable Net profits Depreciation Repurchase of stock Cash dividends Sale of stock
Which of the following statements is CORRECT? a. Depreciation is included in the estimate of cash...
Which of the following statements is CORRECT? a. Depreciation is included in the estimate of cash flows (Cash flow = Net income = Depreciation); hence depreciation is set forth on a separate line in the cash budget. b. If a firm wants to generate more cash flow from operations in the next month or two, it could change its credit policy from 2/10 net 30 to net 60. c. Sound working capital policy is designed to maximize the time between...
Which of the following statements is CORRECT? Assume that the project being considered has normal cash...
Which of the following statements is CORRECT? Assume that the project being considered has normal cash flows, with one outflow followed by a series of inflows. Group of answer choices A) If a project's IRR is positive, then its NPV must also be positive. B) A project's IRR is the discount rate that causes the PV of the inflows to equal the project's cost. C) If a project's IRR is smaller than the WACC, then its NPV will be positive....
i need help on the statement of cash flow - inflow from sales tax -outflow from...
i need help on the statement of cash flow
- inflow from sales tax
-outflow from expenses
-outflow to ourchase inventory
and also need help with total current liabilites!
i added the other pictures to give you back group
information.
Required information Exercise 7-21 Current liabilities LO 7-1,7-2, 7-4, 7-10 [The following information applies to the questions displayed below.] The following transactions apply to Ozark Sales for 2018: 1. The business was started when the company received $48,500 from the...
Which of the following methods assumes that each cash inflow is reinvested at the rate at...
Which of the following methods assumes that each cash inflow is reinvested at the rate at which the present value of a project's cash inflows equal the present value of its cash outflows? a. The net present value b. The average rate of return c. The ratio analysis d. The internal rate of return e. None of these
With respect to financial statements, which of the following
statements is true of depreciation?
With respect to financial statements, which of the following statements is true of depreciation? Depreciation can be taken beyond the residual value of the asset. O Land is depreciated on a 25-year schedule. Accumulated depreciation is credited below the referenced asset. The residual value of the asset is determined by the government.
(Appendix 11.1) Depreciation for Financial Statements and Income Tax Purposes Dinkle Company purchased equipment for $50,000. The equipment has an estimated residual value of $5,000 and an expected useful life of 10 years. Dinkle uses straight-line depreciation for its financial statements. Required: What is the difference between the company's income before taxes reported on its financial statements and the taxable income reported on its tax return in each of the first 2 years of the asset's life if the asset...
Classifying inflows and outflows of cash Classify each of the following items as an inflow () or an outflow (O) of cash, or neither (N) ltem Cash Balance Accounts payable Notes payable Long-term debt Inventory Fixed assets Change (S) +1,760 + 870 +1,120 + 890 770 +1,080 Change (S) Item - 330 - 1,230 +1,550 + 910 +180 +330 Accounts receivable Net profits Depreciation Repurchase of stock Cash dividends Sale of stock
i need help on the statement of cash flow
- inflow from sales tax
-outflow from expenses
-outflow to ourchase inventory
and also need help with total current liabilites!
i added the other pictures to give you back group
information.
Required information Exercise 7-21 Current liabilities LO 7-1,7-2, 7-4, 7-10 [The following information applies to the questions displayed below.] The following transactions apply to Ozark Sales for 2018: 1. The business was started when the company received $48,500 from the...
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