Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

only need the answer of question 8 thx ark Restaurants reported net income in 2008 of 45.9 million and iation e xpense of $48.8 million.

image text in transcribed

only need the answer of question 8 thx

ark Restaurants reported net income in 2008 of 45.9 million and iation e xpense of $48.8 million. They also report additions to property and f $162.9 mil lion. Which of the following disclosures would appear on 08 statement of cash flows? a. Depreciation of $48.8 million would be deducted from net income unde operating activities and the additions $162.9 million would be added investing activities b. Depreciation of $48.8 million would be added to net income under operating activities and the additions $162.9 million would be added under investing activities. under c. Depreciation of $48.8 million would be added to net income under operating activities and the additions $162.9 million would be deducted under investing activities. d. Depreciation of $48.8 million would be deducted from net income under operating activities and under investing activities. the additions $162.9 million would be deducted . How is the matching principle related to the recording of depreciation on angible long-lived, productive assets? a. The matching principle requires a company to use the same depreciation b. Once a particular depreciation method is adopted for a particular asset, the owner must continue to use the same method. c. The accountant who calculates the depreciation may assume that the company will continue in business as long as the asset. d. A portion of the cost of the asset should be allocated as an expense to the periods in which the asset helps the business to generate revenue. the estimated useful life of 8. Which of the following statements is true? a. Liabilities are initially recorded at the amount of their principle plu interest. b. Liabilities can decrease the return on stockholders' equity if the interest rate paid is less than the return on assets. Capital structure is the relative proportion of debt and equity financing. d. Liabilities are current if due within 60 days. 9. Which of the following is false? a. Current liabilities are those that will be satisfied within one year or the operating cycle, whichever is longer. b. Liquidity is the ability of the company to meet its total obligations. c. Current liabilities impact a company's liquidity. d. Working capital is equal to current assets minus current liabilities. 10. On September 1, 2009, Donna Equipment signed a one-year, 8% interest-bearing note payable for $50,000. Assuming that Donna Equipment maintains its books on a calend 2010 income statement for this note (rounded to the nearest dollar) would be ar year basis, the amount of interest expense that should be reported in the a. $2,667 b. $4,000 c. $1,333. d. $3,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions