Financial Management - Study Mode
[#746] An annual estimated costs of assets uses up every year are included
Correct Answer
(A) depreciation and amortization
Explanation
Solution: An annual estimated costs of assets uses up every year are included depreciation and amortization. Depreciation represents the cost of capital assets on the balance sheet being used over time, and amortization is the similar cost of using intangible assets like goodwill over time.
[#747] Proceeds of company shares of sold stock is recorded in
Correct Answer
(B) common stock account
Explanation
Solution: Proceeds of company shares of sold stock is recorded in common stock account. The common stock account is a general ledger account in which is recorded the par value of all common stock issued by a corporation.
[#748] Statement of cash flows are included
Correct Answer
(D) all of above
Explanation
Solution: Statement of cash flows includes cash flows from operating, financing and investing activities. Financing activities include the inflow of cash from investors, such as banks and shareholders and the outflow of cash to shareholders as dividends as the company generates income.
[#749] A company purchases goods but does not pay payments to suppliers immediately and record them as
Correct Answer
(A) account payable
Explanation
Solution: A company purchases goods but does not pay payments to suppliers immediately and record them as account payable. Accounts payable (AP) is money owed by a business to its suppliers shown as a liability on a company's balance sheet. It is distinct from notes payable liabilities, which are debts created by formal legal instrument documents.
[#750] In calculation of net cash flow, depreciation and amortization are treated as
Correct Answer
(D) non-cash charges
Explanation
Solution: In calculation of net cash flow, depreciation and amortization are treated as non-cash charges. A non-cash charge is a write-down or accounting expense that does not involve a cash payment.