Answered: 8. In Investing Activities, the gross…

8. In Investing Activities, the gross fixed assets has to added back with depreciation. a. True b. False If your answer is false, what is the correct answer:

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter13: Capital Budgeting: Estimating Cash Flows And Analyzing Risk

Section: Chapter Questions

Problem 2MC

See similar textbooks

Related questions

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: 1)If an asset value recovers after an impairment loss has been recognized for the asset, what amount…

A: Since, you have posted more than one question, we will answer the first question for you. If you…

Q: Why is depreciation provided on non-current assets? a. so that the business entity concept is…

A: Depreciation means the loss in value of assets because of usage of assets , passage of time or…

Q: Which of the following statements are TRUE? a. The reason for including a treatment of depreciation…

A: The company needs to present financial statements true and fair, that is in compliance with the…

Q: Which of the following statements is false? A For tax purposes, companies can use the MACRS…

A: MACRS means The Modified Accelerated Cost Recovery System

Q: Which of the following statements related to long-lived assets is true? Depreciation is…

A: Depreciation : Depreciation is an accounting method of allocating the cost of a tangible or…

Q: the inflows and outflows method, the following are considered exceptional inflows: A) Interest…

A: Inflows and outflows method specifies the process of evaluating all the desired cash that comes into…

Q: Statement 1: The cost of an asset, or other amount substituted for cost, less its residual value is…

A: Depreciation: It implies to a reduction or fall in the value of fixed assets as a result of its…

Q: True or False: The loss in the market value of tangible fixed assets is referred to as depreciation.

A: Introduction: Depreciation is a source of pre-expense. It is applied to fixed assets over the…

Q: True or False: Depreciation is the decline in the market value of tangible fixed assets.

A: Fixed assets are assets having a life of more than one year. Fixed assets like buildings, equipment,…

Q: When market value of an asset is higher than book value, depreciation is not charged. A) True B)…

A: Meaning of depression. Depreciation is a reduction in the value of asset due to wear and tear,…

Q: Q1 Which of the following statement (s) is (are) true? (i) When no future economic benefits are no…

A: Intangible assets are those assets that lack physical substance and are identifiable and…

Q: 1. Please explain the concept of depreciation in your own words and discuss why it is important.…

A: Many Thanks for the question Bartleby's Guideline “Since you have asked multiple question, we will…

Q: What is the DuPont method of analysis and how does it break down return on assets

A: Given : This question tells about the DuPont method of analysis and how does it break down return on…

Q: What is the term for allocation of fixed assets to expense? * O bad debts expense O depreciation…

A: Introduction: Fixed Assets: The benefits from the assets are having more than one year called as…

Q: What is the difference between depreciation expense and accumulated depreciation?

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

Q: A. True or False: ________ 1. Depreciation is the decline in the market value of tangible fixed…

A: Introduction:- Depreciation is a non cash expenditure. It is charged on fixed assets over estimated…

Q: (a) When would the disposal of a long-term asset result in no gain or loss? (b) When would the…

A: Long-term assets can be defined as those assets which are held by an investor for a period of more…

Q: 7. How is the valuation of current assets affected if th OValuation is based on historical cost.…

A: Current assets are the assets that provide the financial benefit over a year. If the assets is held…

Q: Some believe that accounting depreciation measures thedecline in the value of fixed assets. Do you…

A: Depreciation: Depreciation is a method of reducing the capitalized cost of long-lived operating…

Q: Which of the following is correct about "Cost", "Expense", and "Loss" concepts? Select one: a.…

A: Income statement is one of the significant financial statements and the two components of this…

Q: the equation for book value is: book value = cost of an asset minus its accumulated depreciation.…

A: Asset: Asset is a resource owned by a company from which future economic benefits are expected to…

Q: 6. Which of the. following techniques overstate long-lived assets? a. Overvalue existing assets. b.…

A: The answer is given below: Note: Answering the first question as there are multiple…

Q: As compared to capitalizing a cash expenditure, what is the initial effect on asset turnover of…

A: Asset Turnover Ratio: The total asset turnover ratio evaluates the efficiency of the organization…

Q: Which of the following is not true in regard to selling fixed assets? a.If the selling price is more…

A: The journal entry for sale of fixed asset Cash A/C dr (sale amount) Loss on sale (if bookvalue >…

Q: Question 4 A gain on the sale of a long-term asset is recorded when cash proceeds are: a. less than…

A: SOLUTION- LONG TERM ASSETS ARE INVESTMENT IN COMPANY THAT WILL BENEFIT THE COMPANY FOR MANY YEARS.

Q: Depreciation occurs as a result of: A. Wear and tear B. Decrease in the value of assets C. Increase…

A: Since depreciation is occurse as a result of normal wear and tear and due to which it causes a…

Q: Which of the following events will NOT increase the demand for assets? A. Decline in wealth…

A: Assets refers to any capital expenditure that will generate recurring returns to holder over long…

Q: 2 -There are different receivable write off methods. Explain the differences between each method by…

A: 1. Receivables are write off when credit sales amount not recovered. 2. Capitalized cost included…

Q: Is Penny correct? Do the terms depreciation, depletion, and amortization all mean the same thing?

A: Amortization: It is the process of allocating the value of an intangible asset over its definite…

Q: - In the inflows and outflows method, the following are considered exceptional inflows: A) Interest…

A: The correct option in the given question is (A) Interest earned on investment and sale of…

Q: 6. When computing the amount of interest cost to be capitalized, the concept of "avoidable interest"…

A: Capitalized interest represents the interest cost incurred to finance the construction of a…

Q: Which one of the following statements is true? a. Financial statement readers cannot determine…

A: Financial statement readers cannot determine whether the depreciation method used by a company is…

Q: What effect does the recognition of depreciation expense have on total assets? On total equity

A: Depreciation expense is recorded by debiting the depreciaton expense account and crediting…

Question

8. In Investing Activities, the gross fixed assets has to added back with depreciation.
a. True
b. False
If your answer is false, what is the correct answer:

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Introduction :

VIEW

8. In Investing Activities , Gross fixed assets treatment :

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Financial Reporting in Hyperinflationary Economies

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

LO1 Depreciable cost is the difference between the original cost of the asset and its accumulated depreciation.
Which of the following statements about capitalizing costs is correct? A. Capitalizing costs refers to the process of converting assets to expenses. B. Only the purchase price of the asset is capitalized. C. Capitalizing a cost means to record it as an asset. D. Capitalizing costs results in an immediate decrease in net income.
Which sentence is incorrect? Select one: a. Depreciation is not the actual change in the value of the asset. b. Accumulated Depreciation account has effects on the cash flow statement. c. Accumulated Depreciation is called a contra asset account. d. Depreciation is the process of allocating the cost of an asset to expense, not a valuation process.
For financial accounting purposes, depreciation expense represents the decreasein an asset's fair market value. Select one: True False The total amount of depreciation taken over the life of a depreciable asset should be less if the double-declining balance depreciation method is used than if the straight-line method is used. Select one: True False
Which of the following is not true in regard to selling fixed assets? a.If the selling price is more than the book value, a gain is recorded. b.The cash receipt is recorded. c.The journal entry is similar to discarding fixed assets. d.Accumulated Depreciation will be credited.
QUESTION 1 Which of the following events will NOT increase the demand for assets? A. Decline in wealth B. Increase in the asset return relative to other assets C. Increase in asset liquidity D. Decrease in the asset riskiness relative to other assets
Q1 Which of the following statement (s) is (are) true? (i) When no future economic benefits are no longer expected to flow from an intangible asset, such asset should be derecognized the financial statements of an organization. (ii) When an intangible asset is derecognized, the carrying amount should be written off as a loss in the profit or loss statement at the date of retirement of the asset. (iii) When an intangible asset is sold, the difference between the carrying amount and consideration received is recognized in the profit or loss statement at the date of the sale. (iv) Consideration to be received in the event of sale of an intangible asset should only be cash Select one: a. (ii) and (iv) only b. (i) and (ii) only c. (i) and (iv) only d. (i), (ii) and (iii) only
Under the historical accounting system, depreciation is calculated on the original cost of fixed assets with the result that only an amount equivalent to the original cost of the fixed assets is available for its replacement when its life is over. This results in which of the following problem? a. Mixing up of the holding gains and operating gains b. Fixed assets values are unrealistic c. Return on capital employed misleading d. Insufficient provision of depreciation
LO1 The purpose of depreciation is to (a) spread the cost of an asset over its useful life. (b) show the current market value of an asset. (c) set up a reserve fund to purchase a new asset. (d) expense the asset in the year it was purchased.
The amortization process is like what other process? A. depreciation B. valuation C. recognizing revenue D. capitalization
A) What is residual value? Support your answer with an example ( word count 100) B) In practise, would you expect the depreciation expense for a non-current asset to be overestimated or underestimated? Explain why this is the case.
Which of the following statements is false? A For tax purposes, companies can use the MACRS depreciation method. B When you change a depreciation estimate, such as salvage value, you need to make an adjustment to retained earnings. C If the expected future cash flow is less than the carrying amount, the asset is considered impaired. D If an impairment loss is recorded, depreciation must be recalculated since the book value changed.