how can the gain on the sale of invesment be a deduction from net income in determining the cash flow from operating activities?

Q: Explain how depreciation expense is reported in the Statement of Cash Flows using the indirect…

A: Definition: Statement of cash flows: Statement of cash flow is a financial statement that shows the…

Q: Justification for adding depreciation expenditures to net income in the operating activities portion…

A: The cash flow statement is prepared to record the cash flow from various activities during the…

Q: Discuss the differences between cash basis accounting and accrual basis accounting. What are the…

A: The fundamental principle of accrual basis accounting is the matching principle, which aims to match…

Q: Why might the riskiness of cash flow from the residual value of the real estate differ from the…

A: It is nothing but the salvage value or scrap value of an asset. It speaks to the measure of…

Q: What is the difference between cash basis accounting and accrual basis accounting?

A: Accounting: Accounting is a system, or a process of collecting and organizing economic transactions,…

Q: Explain why, when utilizing the indirect method, depreciation expenditure, depletion expense, and…

A: Here is the Answer

Q: What is calculation of before Tax (Equity) Cash Flow?  Please provide example.

A: The cash flow, which is generated by an investment after deducting all payments of all expenses from…

Q: how can depreciation be a cash flow?

A: Depreciation is an accounting method of allocating the cost of a tangible or physical asset over its…

Q: Explain why depreciation, depletion, and amortization cost in the operational activities part of the…

A: The Answer

Q: Explain why, when utilizing the indirect method, depreciation expenditure, depletion expense, and…

A: Cashflow statement shows the cash inflows and outflows for a specified period. Depreciation…

Q: Why do we exclude depreciation expense and the gain or loss on sale of an asset from the operating…

A: Operating activities are the activities that are related to the ongoing business of an individual or…

Q: Which of the following should be added to net income in calculating net cash flow from operating…

A: Cash flows from operating activities is a section in cash flow statement which shows all income and…

Q: If an asset is sold at a gain why is the gain subtracted from net income when computing the net cash…

A: Statement of cash flows: It is one of the financial statement that shows the cash and cash…

Q: Which of the following expenses apply to or may be claimed by cash basis taxpayers?  a. Depreciation…

A: Under a cash basis, the cash received and cash paid is considered for calculating the income and…

Q: rual profit

A: Difference between Cash and Accrual Profit The cash basis and accrual basis of accounting are two…

Q: Will taxable income (or losses) and capital gain (or loss) be shared in the same proportion that…

A: Taxes paid are reported as operating activities, even taxes related to investing and financing…

Q: Which of the following activity will NOT show up on cash flow from operating activities? O Purchase…

A: Cash flow statement records the inflow and outflow of cash. Cash flow statement includes cash flow…

Q: Compute net cash flows from operating activities using the indirect method.

A: In financial bookkeeping, working income (OCF) alludes to the measure of cash an organization…

Q: When using the indirect method of determining net cash flows from operating activities, how is…

A: Cash flow statement (CFS) is a type of financial statement that gives a summary related to all the…

Q: Can the net cash flows be viewed as before-tax values or aftertax values for which tax effects have…

A: Cash flow after taxes (CFAT) investigates the capacity of an organization to deliver income from its…

Q: When an asset is sold at a gain, why is the gain not reported as a cash inflow from operating…

A: Cash Flow Statement: Cash Flow Statement is a fundamental financial statement that renders valuable…

Q: How much depreciation would the company add to net income on its statement of cash flows?

A: Cash flow statement is part of financial statements of a entity, it shows how the cash has been…

Q: Which of the following items is deducted from net income to arrive at cash flow from operations when…

A: The item that is deducted from net income to arrive at cash flow from operations when using the…

Q: Which of the following phrases best describes the term " actual cash value"? a. market value b.…

A: Actual cash value is the actual amount at which the property could be sold and it is usually less…