Why is depreciation expense added back to net income in the operating section of the indirect cash flow statement?
a. Depreciation expense represents cash outflows for a firm.
b. Depreciation expense represents cash inflows for a firm.
c. Depreciation expense represents a noncash expense that must be moved to the investing section of the cash flow statement.
d. Depreciation expense represents a noncash expense that must be added to net income to cancel its affect within the net income calculation.
e. Depreciation expense represents a cash expense that must be added to net income to cancel its affect within the net income calculation.
D
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Upon bankruptcy being declared, all the assets of the bankrupt are transferred into the possession of the Trustee in Bankruptcy
Indicate whether the statement is true or false
An oil well cost $2,020,000 and is calculated to hold 260,000 barrels of oil
There is no residual value. Which journal entry is needed to record the expense for the extraction of 45,000 barrels of oil during the year? All 45,000 barrels were sold ding the year. (Round any intermediate calculations to the nearest cent, and your final answer to the nearest dollar.) A) Depletion Expense - Oil 349,650 Accumulated Depletion - Oil 349,650 B) Depletion Expense - Oil 349,650 Oil Revenue 349,650 C) Cost of Goods Sold - Oil 349,650 Accumulated Depletion - Oil 349,650 D) Oil Reserve Inventory 349,650 Accumulated Depletion - Oil 349,650
If a petrochemical firm that used oil as feedstock merged with an oil producer that had large oil reserves and a drilling subsidiary, this would be a vertical merger.
Answer the following statement true (T) or false (F)
The sampling method in which a population is divided into blocks and then selected by choosing a random mechanism is called a:
a. random sampling b. systematic sampling c. stratified sampling d. cluster sampling