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24. Depreciation is added back to net income in a statement of cash flows prepared using the indirect method because it: A. reduces income but not cash. B. is a cash inflow. C. is a revenue. D. is a valuation concept.

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2 Dec 2018

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Related questions

1. In preparing the Statement of Cash Flows

	a	deprecation is added to net income when calculating Cash FromOperations (under the Indirect Method).
		B.deprecation is added to net income when calculating Cash FromOperations (under the Indirect Method) because depreciation is anon-cash expense.
		C. Investing Activities and Financing Activities do not requireany adjustments to net income.
	d	All of the above.

Why do some companies prefer the use of residual income overreturn on investment in decision making?

	a.	The concept.
	b.	ROI can motivate managers to make investment decisions that arenot necessarily in the companyâs best interest.
	c.	The calculations for economic profit are easier.
	d.	The data needed to calculate return on investment are not alwaysavailable.

byzantiumrhinoceros149

Which of the following characteristics may result in theclassification of a liability being changed from current tononcurrent:

a) violation of a subjective acceleration clause

b) violation of a objective acceleration clause

c) a demand provision for payment

d) refiancing after the balance sheet date

Pending litigation would generally be considered:

a) nonmonetary liabilty

b) contingent liability

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Barrons Co. current ratio is 2:1. Which of the followingtransactions would normally increase Barney's current ratio?

a) purchasing inventory on account

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On multiple step income statement, gains or losses on sale ofequipment would be shown

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d) after income before extraordinary items but before netincome

A single step income statement is a format that

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b) recongnizes subtotals at intermediate stages such as grossmargin

c) combines revenues and gains and subtracts from them expensesand losses, resulting in income from operations

d) reports sales revenue, cost of goods sold, gross margin, andall other expenses

In contrast with a multiple-step income statement, a single stepincome statement does NOT show the amount of

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b) cost of goods sold

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Under the general rule of revenue recognition, revenue isrecognized when

a) marketability and market price are assured

b) a contractual agreement exists, and cash collection isassured

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Seaworth Company's gross sales in 2014 were 3930000. Assumingsales returns and allowances were 74000 sales discounts were 35000and freight-out was 28000 what were Seaworthy's net sales in2014?

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On June 30, 2014 Sonata COmpanys operating facilities inNebraska were detroyed by a flood. The loss of $700000 was notcovered by insurance. Sonata's tax rate for 2014 is 40 percent. InSonatas income statement for the year ended sept 30 2014 this eventshould be reported as an extraordinary loss of

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b) a cash inflow from financing activities

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When preparing a statement of cash flows using the indirectmethod, the amortization of trademarks should be reported as a

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