A: added back to net income when determining CFO using the direct method.
B: added back to net income when determining CFO using the indirect method.
C: considered a cash item.
举一反三
- Which of the following is NOT a reason why cash flow may not equal net income? A: Amortization is added in when calculating net income. B: Changes in inventory will change cash flows but not income. C: Capital expenditures are not recorded on the income statement. D: Depreciation is deducted when calculating net income.
- While preparing a statement of cash flows using the indirect method, the Depreciation Expense ________.
- Which of the following items is included in the adjustment of net income to obtain cash flow from operating activities? ( ) A: Depreciation expense for the period. B: dividend C: The amount by which equity income recognized exceeds cash received. D: The change in deferred taxes.
- Depreciation expense is not reported on a statement of cash flows prepared under the direct method.
- In order to convert the average annual net cash inflow from the asset back to the average annual operating income from the asset, one must ( ) A: subtract annual depreciation expense B: add annual depreciation expense C: multiply by annual depreciation expense D: divide by annual depreciation expense
内容
- 0
Depreciation expense is not reported on a statement of cash flows prepared under the direct method. A: 正确 B: 错误
- 1
An analyst does research about cash flow calculation. The indirect method of reporting cash flow from operating activities most likely begins with:（） A: net income. B: depreciation and amortization. C: changes in balance sheet accounts.
- 2
Net income is $500m, depreciation is $100m, capital expenditures and debt repayment is $50m and $150m respectively. What is the amount of free cash flow to equity?
- 3
The present value of tax savings from depreciation deductions from an accelerated depreciation method will be ________ those from the straight-line method.
- 4
Which of the following statement is not true? A: The initial investment in working capital is a cash outflow at the ending of the project for items such as inventories B: Working capital is recaptured at the end of the project when working capital is no longer required C: Depreciation is not a current cash outflow. D: Discounted cash flow methods automatically provide for a return of the original investment, thereby making a deduction for depreciation unnecessary