When an asset or liability is initially recorded, what determines its amount? The Replacement cost The initial measurement  The future value of future cash flows The present value of future cash flows

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: Where are gains and losses related to cash flow hedgesinvolving anticipated transactions reported?

A: Derivatives: Derivative is a product whose value is derived from underlying assets called base.…

Q: Does gross fixed assets belong to operating, investing, or financing activities on the statement of…

A: Gross Fixed assets belongs to Investing Activities on the statement of cash flows.

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

A: The Answer

Q: Under IFRS, value-in-use is defined as: a.   net realizable value. b.   fair value. c.   future cash…

A: IFRS International financial reporting standards are guidance and framework provided for reporting…

Q: Which of the following statements is true for historical cost valuations? (Select one or more)…

A: According to accounting principles, a historical cost is a method of valuing assets in which the…

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: How do youcalculate present and future value cash flows from various time periods using single and…

A: Capital budgeting tools are used to make a decision on how much capital should be invested in a…

Q: ow are accrual accounting earnings used in valuation and why are current earnings considered more…

A: The cash flows are important for an entity because a lack of liquidity hinders business…

Q: What is the maturity period required for an investment to qualify under the definitions of a cash…

A: Cash and cash equivalents correspond to just the line item on the balance sheet that lists the value…

Q: Salvage value of a piece of equipment would show on the cash flow diagram as wha Select one: a.…

A: Salvage value is the disposal value of equipment at the end of life of project.

Q: Finding the present value of future cash flows is called O A. analytics, tracking and finding the…

A: Capital Budgeting: It is a process a company undertakes for the evaluation of potential investments…

Q: Which of the following is the correct definition for present value (PV)?

A: Present value is an important concept in finance which is based on the concept of time value of…

Q: The measurement basis most often used to report a long-term paya a commitment to pay money at a…

A: Accounting Principals -Accounting standards, such as GAAP and IFRS, provide a set of rules and…

Q: In general, there are several ways to address a particular sequence of cash flows in order to…

A: Present value is sum of present value of cash flows. Future value is sum of future value of cash…

Q: Choose the correct.Determination of net present value involves: A)forecasting future profits and…

A: Net present value method: Net present value method is the method which is used to compare the…

Q: What is the concept of future value within the context of the larger overall concept of the time…

A: The concept of future value is a fundamental component of the broader idea known as the time value…

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: Under IFRS, value-in-use is defined as:(a) net realizable value.(b) fair value.(c) future cash fl…

A: IFRS International financial reporting standards are guidance and framework provided for reporting…

Q: We can separate cash return on assets into: a. Cash flow to sales and return on assets. b. Profit…

A: Cash return on assets is: = Cash flows / Average Assets

Q: ,Match the following terms with the appropriate definition.Effective yield or interest rateMonetary…

A: Eeffective yield or interest rate is a rate at which the amount invested actually grows over 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 sorts of questions about future cash flows do investors and creditors use the income statement…

A: This question explains about the cash flows , investors and creditors use the income statement

Q: About cash flows versus net income. Which should we use in present value calculations and why?

A: Net present value is the value of an investment in today’s worth. It is a capital budgeting…

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: true or false The first step in preparing the statement of cash flows is to determine the change…

A: Steps Include in preparation of cash flow statement;   1St Step= Preparation of cash flow from…

Q: The time value of money must be considered when decision involved cash flows over time. Explain this…

A: Time value of money needs to be considered when decision involved cash flows over time because of…

Q: In the net present method future, cash flows are discounted to their present value a)TRUE b) FALSE

A: Under net present value method all future cash flows are discounted to their present value .

Q: How do you evaluate an asset whose value is dependent on future cash flow expectations

A: The Answer :

Q: When completing the statement of cash flows using the indirect method, an increase in an asset…

A: Cash flows statement: To know the cash position of the company statement of cash flows are prepared.…

Q: The costs or benefits of holding or not holding money over time refers to the concept of: the time…

A: The time value of money (Correct): The time value of money is a financial concept that suggests that…

Q: Briefly discuss why you might choose each of the following analysis techniques when considering an…

A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: Determining the future value of one or more present day cash flows is known as​ ________.   A.…

A: Future value is known as value in the future of present cash flows

Q: What sorts of questions about future cash flows are answered by the income statement for investors…

A: Definition : This question tells about the  income statement contains the  investors and creditors.

Q: What makes current liabilities different from long term liabilities?

A: Hey, since there are multiple questions posted, we will answer first question. If you want any…

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

A: The Answer :

Q: An investment is the use of money or capital for income or​ _______. expenses profit value present…

A: An investment is an item or an asset acquired with the goal of earning income or appreciation in 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…