Managerial Accounting
Managerial Accounting
6th Edition
ISBN: 9781259726972
Author: John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher: McGraw-Hill Education
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Chapter 11, Problem 2AA
To determine

Concept introduction:

Marketable Securities are the securities which are liquid in nature and can be easily converted into cash.

Capital Assets are the assets that are generally long term asset i.e. having useful life for more than one year and the capital asset are generally not intended for sale in the normal course of business operations. These are generally properties (movable and immovable), tangible or in tangible, etc.

Requirement 1:

We have to determine the amount of annual cash flow of Google.

To determine

Concept introduction:

Concept introduction:

Marketable Securities are the securities which are liquid in nature and can be easily converted into cash.

Capital Assets are the assets that are generally long term asset i.e. having useful life for more than one year and the capital asset are generally not intended for sale in the normal course of business operations. These are generally properties (movable and immovable), tangible or in tangible, etc.

Requirement 2:

We have to determine the amount that Google invested in capital asset for year 2017.

To determine

Concept introduction:

Concept introduction:

Marketable Securities are the securities which are liquid in nature and can be easily converted into cash.

Capital Assets are the assets that are generally long term asset i.e. having useful life for more than one year and the capital asset are generally not intended for sale in the normal course of business operations. These are generally properties (movable and immovable), tangible or in tangible, etc.

Requirement 3:

We have to determine whether Google invested more in capital asset or Apple invested in capital asset for year 2017.

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Managerial Accounting

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Discounted cash flow model; Author: Edspira;https://www.youtube.com/watch?v=7PpWneOBJls;License: Standard YouTube License, CC-BY