Is depreciation a source of cash flow?

Q: Identify the cash flow series associated with production or service over thelife of the asset?

A: Definition: Cash inflows: The amount of cash received by a company from the operating, investing,…

Q: What is alternative cash flow measures?

A: Cash flow refers to the amount of cash that moves in and out of the business because of its…

Q: How is the value of an asset determined by predicted future cash flows?

A: The Answer

Q: how changes in Working Capital affect Cashflow?

A: Working capital or net working capital is equals to firm’s current assets minus current liabilities,…

Q: How do you evaluate an asset whose value is predicated on future cash flows?

A: Assets are the resources that are generally used for the purpose of revenue generation by the…

Q: What are the Effects of Inflation on Projects with Depreciable Assets?

A: Answer: A depreciable asset is nothing a property that gives more economic benefit over a tax period…

Q: What happens to cash if the value of other current assets rises? Is it possible that current assets,…

A: Here is the answer :

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: how can the gain on the sale of invesment be a deduction from net income in determining the cash…

A: Statement of cash flows: Cash flow statement is also known as statement of cash flows. It is a…

Q: “Depreciation expenses have no effect on cash flows and, therefore, are not relevant in…

A: Depreciation expenses have no effect on cash flows and, therefore, are not relevant in…

Q: what are the major advantages of the indirect method of reporting cash flow from operating…

A:

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: How can we determine the net cash flow from operations?

A:

Q: Actual cash value is defined as Replacement cost Coinsurance amount Insurable value Depreciated…

A: Actual Cash Value (ACV) is a method of valuing insured property of business. It is not equal to…

Q: What are net operating loss carryforwards and how can they provide cash savings?

A:

Q: Which of the following should NOT be taken into account in calculating free cash flow? Select one:…

A: Free Cash Flow = Net income + Depreciation – Change in Working Capital – Capital Expenditure

Q: What is meant by asset transformation and how is it the basis for differentiating between indirect…

A: Finance transformation can be defined as a business-wide combination of process, system, and culture…

Q: The indirect approach subtracts depreciation costs from net income before calculating operating cash…

A: Given : The question explains about Using the indirect technique, depreciation expenses are…

Q: What are the primary benefits of reporting cash flows from operational operations in an indirect…

A: This question explains about cash flows from operational operations in an indirect manner

Q: How is the Salvage value a positive cash flow?

A: Cash flows are the cash generated from the operation of the business organisation. In other words,…

Q: Why is the free cash flow valuation model so widely used?

A: With the free cash flow of the firm, administrators will focus on potential businesses that increase…

Q: Explain the Sharing of Cash Flow from Sale?

A: Operating cash flows (OCF) is a calculation of the cash generated from the ordinary operations of…

Q: Why should the capital expenditures be capitalized?

A: Capital Expenditures:   Capital expenditures are those which provide future economic benefits by…

Q: What is the difference between the Direct Method and Indirect Method for calculating Cash Flow

A: Introduction A company's total production and cash outflow is referred to as its cash flow. Accounts…

Q: How can we estimate the profits (more precisely, the cash nows) that the assets will generate during…

A: It is a process of acquiring an approximation or projection or forecast of a firm’s future budgetary…

Q: An investment property is considered to generate cash flows that are?

A: Investment property can be defined as the property consisting of land or building which is not…

Q: How are incremental cash flows found in a replacement analysis?

A: The choice to substitute an existing asset with another is defined as the net current and internal…

Q: What is the difference between net cash provided by operating activities and free cash flow?

A:

Q: What is the first impact on asset turnover of promptly expensing a cash outlay compared to…

A: The Answer :

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: If you paid miscellaneous expenses does it decrease cash asset?

A: Miscellaneous expenses are those expenses which are usually group of small amounts from small…

Q: What is irregular cash flow stream?

A: Cash Flow has a flow concept. There can either be cash inflow or cash outflow. Generally, for…

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…

Q: “The trouble with discounted cash flow methods is that they ignore depreciation.” Do you agree?…

A: Answer:No, the discounted cash-flow methods implicitly treat depreciation in rate of return…

Q: Can you give some explanation of why Amortization Expense is included as a source of cash in a cash…

A: In indirect  method  of cash flow statement  we add back amortization expense  to net income  in…

Q: cash generated from operations usually larger than net profit

A: Cash generated from operations is the amount of cash received in respect of operating activities.

Contract Costing

Contract costing is about tracing particular costs related to a particular contract entered into with the customer. It is one of the forms of job order costing. It is useful in long-term contracts at the most. It is seen that substantial time is required for the completion of the contract which takes different accounting periods. Thus, it is very much helpful for recognizing the costs associated with it and accounting in their specific accounting periods.