The incremental cash flows of leasing consider which of the following?I. cost of the assetII. lease payment amountIII. applicable tax rateIV. annual depreciation expense

Q: Demonstrates the difference between depreciation costs as expenses and the cash flow generated by…

A: Depreciation expense: Depreciation expense is a non-cash expense, which is recorded on the income…

Q: how to calculate Average Total Assets   is it total of non current asset + current asset or…

A: Average total Assets is calculated by using the following formula: Average Total Assets = (Total…

Q: Discuss the differences between using (1) a terminal cap rate and (2) an appreciation rate in…

A: Every property has to be evaluated over the cap rate beforehand it's vended. For the asset being…

Q: A To adjust CAPEX for taxable income B To isolate changes due to buying or selling of CAPEX C To…

A: The net capital expenditures are the difference between capital investments and depreciation, and…

Q: GAAP provides guidelines for the inclusion of interest in the initial cost of a self-constructed…

A: 1.

Q: Which of the following is excluded when projecting future cash flows for the purpose of determining…

A: As per International Accounting Standard 36   Impairment of assets When projecting future cash flows…

Q: Cost of property asset minus accumulated depreciation is equal to net book value.   T/F

A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage…

Q: Which one of the following category outstanding expenses belong to? a. Intangible asset b. Current…

A: Outstanding expenses are those expenses which have been incurred during the period but not yet paid.…

Q: Restrictive short-term financial policies with regard to current asset management include three…

A: Current asset management is managing or handling the current assets of a company. Current assets…

Q: The difference between book value of the asset with the proceeds received from its sale, will…

A: The book value of the asset is the cost of the asset less accumulated depreciation.

Q: The payback method measures: The profitability of an investment. The net cash inflow from an…

A: Pay back period is most popular method of capital budgeting decisions and is quite simple to use and…

Q: Explain and evaluate the eff ects on financial statements and ratios of leasing assets insteadof…

A: Leasing can be defined as the contract between the lessor(owner) and the lessee(user of asset)…

Q: A capital expenditure would be: Group of answer choices added to the cost of the asset ignored…

A: The Capital expenditure is that expenditure which is incurred for long term benefits. The benefits…

Q: Define amortization period.

A: Amortization: Amortization is a process in which the cost of intangible assets is spread equally…

Q: Give an example of Current Asset, Current liabilities, Non Current Asset, Non Current Liabilities

A: 1. Current Assets : These are the assets which are convertible into cash within a Year   Example: 1.…

Q: Executory costs include Select one: a. insurance. b. property taxes. c. maintenance. d. all…

A: In case of leased assets there are certain expenses incurred Upto the economic life of the asset,…

Q: Does the accrual accounting rate-of-return method consider income earned throughout a project's…

A: The accrual accounting rate-of-return(ARR) formula splits the average income of an asset by the…

Q: The money spent on long term assets is called Select one: O a. Revenue expenditures O b. Capital…

A: Capital expenditures refer to funds that are used by a company for the purchase, improvement, or…

Q: would the return on as

A: Return on Assets is net income divided by the average total assets

Q: The capitalization of interest cost during construction?:

A: When a company builds an asset, it incurs costs associated with constructing the asset, such as…

Q: is the difference between the gross present value of the benefits of that action and the amount of…

A: Net present value is the difference between the present value of future cash inflows and cash…

Q: Residual value is O a. Present value. O b. Value in use. O . The net cash amount that is received…

A: The fixed assets may have a residual value that can be attained at the end of its life.

Q: Outstanding rent is Select one: a. Long term liability O b. A revenue C. A current liability O d. A…

A: Outstanding rent come under the head of Current Liability within the record. Outstanding rent are…

Q: The modified internal rate of return (MRR) test is designed to address a limitation associated…

A: The question is asking about the limitation of the internal rate of return (IRR) that the modified…

Q: Which of the following methods consider the time value of money? A. payback and accounting rate of…

A: Time Value of Money The time value of money is the concept that money you have now is worth more…

Q: The “carrying value” of a long term asset on the Balance Sheet represents: a. The net book value of…

A: Correct answer-option a:The net book value of the asset

Q: EBITDA can be calculated using following formula depreciation = EBITDA + ЕBIT ammortisation EAT…

A: EBITDA means earning before interest , tax , depreciation and amortization.

Q: 22. Which of the following assumption provides support for measuring the property, plant, and…

A: The PPE includes the fixed assets as property, plant and equipment.

Q: Which of the following is an essential step in the case of cost/income equivalents for comparing…

A: In financial analysis there is need of comparisons between machines to select most economically…

Q: (Multiple Choice Question) Amortizable Cost refers to   1. An asset's Net Book Value minus its…

A: Amortizable cost refers to that cost of a fixed asset which has to be charged as an expense either…

Q: QUESTION 17 Which of the following is the most likely journal erry to record the amortisation of an…

A: Amortization of Intangible Assets:- it means expensing the total cost of Intangible assets such as…

Q: Where Are Depreciation Expenses Reflected in a Financial Statement?

A: Depreciation expense is debited to income statement.