Non cash expenses: Non cash expenses do not involve any out of pocket payment but reduction in the value of an asset. Since, Non cash expenses do not involve a cash payment; it should not be subtracted from the revenue to arrive at the cash flows for the year. To explain: The reason why Depreciation expense, depletion expense, and amortization expense are added to net income in the cash flow statement.

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Answer 1

Question

Chapter 16, Problem 7RQ

To determine

Non cash expenses: Non cash expenses do not involve any out of pocket payment but reduction in the value of an asset. Since, Non cash expenses do not involve a cash payment; it should not be subtracted from the revenue to arrive at the cash flows for the year.

To explain: The reason why Depreciation expense, depletion expense, and amortization expense are added to net income in the cash flow statement.

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Answer 2

Question

Chapter 16, Problem 7RQ

To determine

Non cash expenses: Non cash expenses do not involve any out of pocket payment but reduction in the value of an asset. Since, Non cash expenses do not involve a cash payment; it should not be subtracted from the revenue to arrive at the cash flows for the year.

To explain: The reason why Depreciation expense, depletion expense, and amortization expense are added to net income in the cash flow statement.

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Answer 3

Question

Chapter 16, Problem 7RQ

To determine

Non cash expenses: Non cash expenses do not involve any out of pocket payment but reduction in the value of an asset. Since, Non cash expenses do not involve a cash payment; it should not be subtracted from the revenue to arrive at the cash flows for the year.

To explain: The reason why Depreciation expense, depletion expense, and amortization expense are added to net income in the cash flow statement.

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Answer 4

Question

Chapter 16, Problem 7RQ

To determine

Non cash expenses: Non cash expenses do not involve any out of pocket payment but reduction in the value of an asset. Since, Non cash expenses do not involve a cash payment; it should not be subtracted from the revenue to arrive at the cash flows for the year.

To explain: The reason why Depreciation expense, depletion expense, and amortization expense are added to net income in the cash flow statement.

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Answer 5

Chapter 16, Problem 7RQ

To determine

Non cash expenses: Non cash expenses do not involve any out of pocket payment but reduction in the value of an asset. Since, Non cash expenses do not involve a cash payment; it should not be subtracted from the revenue to arrive at the cash flows for the year.

To explain: The reason why Depreciation expense, depletion expense, and amortization expense are added to net income in the cash flow statement.

Answer 6

Chapter 16, Problem 7RQ

To determine

Non cash expenses: Non cash expenses do not involve any out of pocket payment but reduction in the value of an asset. Since, Non cash expenses do not involve a cash payment; it should not be subtracted from the revenue to arrive at the cash flows for the year.

To explain: The reason why Depreciation expense, depletion expense, and amortization expense are added to net income in the cash flow statement.

Answer 7

Chapter 16, Problem 7RQ

To determine

Non cash expenses: Non cash expenses do not involve any out of pocket payment but reduction in the value of an asset. Since, Non cash expenses do not involve a cash payment; it should not be subtracted from the revenue to arrive at the cash flows for the year.

To explain: The reason why Depreciation expense, depletion expense, and amortization expense are added to net income in the cash flow statement.

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 16 - Prob. 1QC Ch. 16 - Prob. 2QC Ch. 16 - Prob. 3QC Ch. 16 - Prob. 4QC Ch. 16 - Prob. 5QC Ch. 16 - The Plant Assets account and Accumulated...Ch. 16 - Mountain Water Corp issued common stock of $28,000...Ch. 16 - Prob. 8QC Ch. 16 - Maxwell Furniture Center had accounts receivable...Ch. 16 - Prob. 10BQC

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