FINA week 5 intellipath - Which of the following is a non cash expense depreciation expense administrative expenses lease payments Interest expense 2 A

FINA week 5 intellipath - Which of the following is a non...

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Which of the following is a non cash expense? depreciation expense administrative expenses lease payments Interest expense 2 A _______ is the most common form of underwriting? best effort basis firm commitment dutch auction auction cycle 3 $3,333.33 $1,666.66 $3,750.00 $1,250.00 4 As an asset is depreciated _____. the market value is similarly reduced cost of the depreciation is moved from the balance sheet to the income statement cost of the asset is moved from the balance sheet to the income statement the book value is not impacted $3,350 $1,800 $1,550 $18,000 Depreciation indicates how much _____. an asset is currently worth an asset has lost in value of an asset’s value has been used up a firm can deduct from total assets Which of the following is not needed to calculate depreciation? Date of purchase Salvage value Cost of asset Estimated useful life When any depreciable asset is sold the businesses must _____. restate income based on the previous depreciation expense restate assets based on the previous depreciation expense recognize a gain or loss based on cost minus depreciation pay back taxes on the previous depreciation expense Accumulated depreciation is a contra account since it ______. results in a separate account which can be used to offset other appreciating assets separately shows a negative amount directly associated with another account is only relevant for the first year of a new asset shows the movement of a depreciation expense back to the income statement As an asset is depreciated _____. cost of the depreciation is moved from the balance sheet to the income statement the book value is not impacted cost of the asset is moved from the balance sheet to the income statement the market value is similarly reduced Deducting the investment cost in a non-tangible asset is referred to as _____. absorption depreciation amortization abatement In order to reconcile net income to cash flows from operations _____. depreciation must be added back to the cash flow statement depreciation must be subtracted from the income statement depreciation must be subtracted from the cash flow statement depreciation must be added back to the income statement Which of the following is incorrect? Depreciation expenses result in reduced net income Depreciation is a non cash expense Depreciation can be added back to net income since it is a non cash expense Depreciation expenses result in reduced taxes paid $1,666.66 $1,250.00 $3,750.00 $3,333.33 If a machine was purchased for $18,000 and has a useful life of ten years what would the annual depreciation amount be if we assumed straight line deprecation and a salvage value of $2,500? $1,800 $3,350 $18,000 $1,550 Depreciation matches the _____ with the _____. profit – time it took to generate that profit profit –expense it took to generate that profit operating expense–time it took to generate that profit operating expense–book value of the fixed assets Depreciation should not exist on the _______.
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