EBITDA can be calculated using following formula depreciation = EBITDA + ЕBIT ammortisation EAT interest tax
Q: Depreciation Inflation Taxation
A: Definition of each of these financial terms along with an example each are provided below:
Q: If the sale price executes at the price you specified, what would be the total loss, excluding…
A: Sales price when executed at the price specified will be equal to the breakeven price. Break even…
Q: Depreciation represents a __________ in the value of fixed assets.
A: Fixed assets are those type of assets which are being held by the business for longer period of…
Q: Explain rate of return on total assets.
A: Accounting Ratio: It refers to a number expressed in terms of another to establish relationship…
Q: The adjusted basis of an asset is the original cost (or basis) plus capital recoveries less capital…
A: Adjusted basis: The amount of original cost, plus additional investments (capital expenditure) and…
Q: Cost of property asset minus accumulated depreciation is equal to net book value. T/F
A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage…
Q: for information on MACRS depreciation.) What is the required net investment, and what are the year 1…
A: Net Investment= Cost of equipment + freight and installation cost= 900000+100000=1000000 The net…
Q: The primary measurement basis is a.) The current market price if the asset currently held was sold…
A: there are different measurement devices that are used- historical cost current cost net realizable…
Q: Determining how to spread out the cost of a durable good over time is important for O Tax purposes…
A: Division of equivalent cost in the for the life of asset is known as spreading out cost which is…
Q: Profit on sale of fixed assets is [A] non trading income [B] operating income [C] non trading gains…
A:
Q: eceivable (net).. ed depreciation-eguipment
A: Statement of Cash Flow statement for year ended Dec.31,20Y3…
Q: Asset utilization ratios describe how capital is being utilized to buy assets
A: Assets refer to the resources that the company owned in the organization and utilized for the…
Q: The book value of an asset is equal to the: a. asset's market value less its historical cost b.…
A: Book value is the net value of the assets that appears in balance sheet. it is calculated by…
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: Adjusted Net Asset Value method
A: Assets represent the future economic value of the company that is sacrificed in order to pay off the…
Q: According to the acquired assets should be recorded at the amount actually paid rather than at the…
A: Lets understand the each option given for the question to determine the correct answer. Monetary…
Q: From the following identify the cost that is not a cost of PPE? Professional fees Nonrefundable…
A: A company's physical or tangible long-term assets having a life of at least one year are referred to…
Q: n computing for the comprehensive income, the revaluation surplus will be deducted from the net inco
A: Solution Concept Revaluation surplus The term revaluation surplus means when the fair value of the…
Q: Which items comprise operating current assets? Why is itreasonable to assume that they grow…
A: Operating current assets are the short-term assets utilized to promote a business's processes
Q: n a restated set of financial statements prepared in accordance with the current cost accounting,…
A: Realized gain is the gain on sale of the asset where its cost price is less than the selling price.…
Q: The depreciation expense is generally estimated based on some assumption such as percentage of sales…
A: Depreciation can be defined as the reduction in the value of the asset over a period of time due to…
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 correct total asset turnover ratio
A: Introduction:- Ratio analysis is used to identify financial performance of the company. Financial…
Q: Write the fraction obtained from the straight-line depreciation rate?
A: Depreciation expense accounts for the decline in the value of assets used in the business due to…
Q: Which of the following is an essential step in the case of cost/income equivalents for comparing…
A: In financial analysis there is need of comparisons between machines to select most economically…
Q: Explain why depreciation expense is added back to net income and why an increase in inventories is…
A: A Cash flow statement is a financial statement that provides summarised information regarding cash…
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: Where non-current assets are held for sale, they are required to be measured using: the…
A: Non-current assets are held for sale - Non Current Assets are part of the assets in the balance…
Q: As compared to capitalizing a cash expenditure, what is the initial effect on asset turnover of…
A: Asset Turnover = Sales / Average Total Assets Average Total Assets = (Beginning Total Assets +…
Q: Explain an example how to calculate rate of return on total assets.
A:
Q: Assets acquired ina lump-sum purchase are valued based on: a. Their assessed valuation. b. Their…
A: As per IAS 16, when more than one item of property, plant, and equipment is purchased for a…
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: 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: The difference between book value of the asset with the proceeds received from its sale, will result…
A: The book value of an asset is the value of the asset calculated by deducting the accumulated…
Q: he amount of accumulated depreciation fo O A. cash payments for selling and admi
A: The accumulated depreciation is the sum of the total depreciation expense incurred on a particular…
Q: A company wishes to report the highest earnings possibleaccording to GAAP. Therefore, when…
A: Depreciation: It refers to a gradual decrease in the fixed asset’s value because of obsolescence,…
Q: REQUIRED: calculate the capital gain or lss for each. Also, indicate which type of property this…
A:
Q: Which of the following values for an intangible asset would a company capitalize and amortize? a.)…
A: Intangible assets are those assets which cannot be touched or seen but can be felt. Goodwill,…
Q: Valuing assets at the amount of cash or equivalents paid or the fair value of the consideration…
A: The elements of financial statements which contain the financial information about an organization…
Q: Question: (a) What is a Capital Recovery Amount Factor (b) Write a detailed note on Minimum…
A: Capital recovery in the simplest terms refers to the net amount of initial investment that could be…
Q: which of the following statements in relation to the cost of the asset is true? A. all of the…
A: The balance sheet represents the financial position of the business with assets, liabilities on a…
Q: Which one of the following methods charges depreciation at a rate double to the one used in straight…
A: Depreciation is considered a reduction in the value of assets due to the use of that asset. We can…
Q: The amortization process is like what other process?A. depreciationB. valuationC. recognizing…
A: Some assets loses out their value over the period of time. These can be fixed assets or natural…
Q: When an entity adjusted the historical cost income statement by applying specific price index to…
A: This question is answered as per Inflation accounting.
Q: Assets are usually valued at? a.Historical Cost b. Residual Value c. Net Realizable Value d.…
A: Assets are the resources that are owned by the organizations. Assets can be current or non-current.
Q: According to historical cost principle, the assets and liabilities should be reported (tick…
A: Assets and liabilities are the part of the balance sheet of a company. They help in determining the…
Q: What is the difference between the cost of a fixed asset and its accumulated depreciation called?…
A: Accumulated depreciation is the total of all the depreciation that has been charged to the asset…
Q: Brief Exercise 9-14 Concord Ltd. has a single debt investment that it accounts for using FV-OCI…
A: Journal entry refers to the process of recording and summarizing business economic transaction in…
Q: If an asset is sold at a gain, why is the gain deducted from net income when computing the netcash…
A: Statement of cash flows: Statement of cash flow is a financial statement that shows the cash and…
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- Assets are usually valued at? a.Historical Cost b. Residual Value c. Net Realizable Value d. Replacement CostAccording to historical cost principle, the assets and liabilities should be reported (tick whichever apply)? a.At their market value b.At their cost of acquisition c.At their replacement value d.All of the aboveDefine return on total assets.
- Which formulas are entered in cell C12 to return the value for the asset turnover ratio from existing ratios?Which of the following is not an asset utilization ratio? Group of answer choices... a. Return on assets b. Average collection period c. Fixed asset turnover d.Inventory turnoverDetermine the following; A.)Depreciation rate, in %. B.)Value of A. C.)Value of B.
- Th e valuation technique under which assets are recorded at the amount that would be received in an orderly disposal is: A . current cost.The historical cost principle requires that when assets are acquired, they be recorded at Select one: a. book value. b. appraisal value. c.market price. d. cost.How do I compute for the Started,completed, and transferred-out in Weighted Average EUP?