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: The difference between book value of the asset with the proceeds receive from its sale, with result…

A: Assets:   It refers to the economic value of all resources owned by the business at a given point in…

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: 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: Explain what is meant by future deductible amounts. Why is it important to understand this concept?

A: Future deductible amounts refer to the expenses that a business incurs in the current period but…

Q: Which method use net income and which use cashflow.

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

Q: xplain goodwill impact on balance sheet, cashflow or income statement???? With examples

A: On a corporation's balance sheet, "goodwill" symbolizes the value that the firm got when it…

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: What is the classification of long term assets? Explain them.

A: Long-term assets: Long – term assets are those assets that are generally held by a company for more…

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: What are the effects of depreciation on the profit and loss account and balance sheet?

A: INTRODUCTION: A depreciation plan or chart makes it easier for organizations to keep track 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: exposure deals with cash flows that result from existing contractual obligations. OA. Operating OB.…

A: Exposures means potential changes in value or items in the business. It can be transaction exposure,…

Q: Explain why depreciation expenditure, depletion expense, and amortization expense are added to net…

A: Depreciation is the wear and tear of the asset which is charged to the profit and loss account…

Q: If the cash amount paid to satisfy the “Asset Retirement Obligation” (ARO) account balance is…

A: Asset retirement obligation is the obligation on the entity which is to be paid on the retirement of…

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 is the adjusting process of accrual and cash basis accounting ?  what is depreciation ? what…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: What is unique about reporting current assets? Current assets are reported after they are converted…

A: Current assets can be exchanged for cash within a year.

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: 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: rual profit

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

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: Why is depreciation an addition in the operating section of the statement of cash flows, when…

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