Interest expenses incurred on debt financing are Blank______ when analyzing a proposed investment. Multiple choice question. treated as cash outflows ignored treated as cash inflows capitalized
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Interest expenses incurred on debt financing are Blank______ when analyzing a proposed investment.
treated as cash outflows
ignored
treated as cash inflows
capitalized
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- The funds invested in current assets are termed as Select one: a. long term assets b. Short term loans c. None of the options d. Net Working Capital e. Short-term liabilitiesThe funds invested in current assets are termed as Select one: a. None of the options b. Short-term liabilities c. Short term loans d. Gross Working Capital e. long term assetshow are statement of cash flows used to evaluate a loan request for a prospective borrower?
- Short-term investment and long-term investment will be recorded in what type of financial statement to evaluate the actual inflow and outflow of the money.The statement of cash flows reports the cash proceeds from issuing a bond as a cash flow from Select one: a. Investing activities. b. Asset activities. c. Operating activities. d. Financing activities. The primary advantage of making investment decisions based on the net present value method, instead of the payback period, is that the net present value method Select one: a. Considers depreciation expense as part of the investment’s cash flows. b. Is easier to compute then the payback period. c. Conforms to generally accepted accounting principles. d. Factors the time value of money in its calculations. A firm with an investment opportunity whose internal rate of return was lower than its cost of capital would Select one: a. Use the payback period method to make the investment decision. b. Possibly make the investment. c. Make the investment. d. Not make the investment.Cash paid to purchase long-term investments would be reported in a. a separate schedule of noncash investing and financing activities b. the investing activities section of the statement of cash flows c. the financing activities section of the statement of cash flows d. the operating activities section of the statement of cash flow
- Cash paid to purchase long-term investments would be reported in the Statement of Cash Flows as: Multiple Choice a deduction from the Investing section an addition to the Investing section a deducțion from the Operating section an addition to the Financing sectionWhich of the following is included in the cash flows from financing activities section of the statement of cash flows? Multiple Choice Purchase of investments. Interest expense. Purchase of treasury stock. Sale of equipment. Interest revenue.Use IFRS 9 to determine how to subsequently measure the following financial assets. Three choices of measurement basis are amortized cost, fair value through other comprehensive income, and fair value through profit or loss. Provide justification for your choice. Long-term loans that are held for collecting contractual cash flows till their maturities, but may be subsequently sold if the loans’ credit risk substantially increases. Investments in bonds that are held for collecting contractual cash flows, and may be subsequently sold to re-invest the cash in financial assets with a higher return. Subprime (high risk) mortgage loans that were originated by a mortgage-broker firm that always sell these loans to banks right after their origination. Forward contracts that an EU bank purchased to hedge the exposure to changes in fair value of US$-denominated loans. Investment in bonds that are convertible into common stock of the bond issuer. Investment in bonds that pay a variable market…
- Note payments reduce cash and are related to long-term debt. Do these facts automatically lead to their inclusion as elements of the financing section of the statement of cash flows? Explain.The increase of acc. Receivable can be include in Inflow in investing activities O Outflow in operation Inflow in operation. O Inflow in the financing activities.Working capital represents the portion of current assets financing through long term funds. This indicates 1. Net Working Capital 2. Gross Working capital Select one: O a. 2 is correct O b. Both 1 and 2 are correct O c. 1 is correct O d. Neither of the two are correct