The profit or loss on disposal of a non-current asset is an accounting entry and not a

Question:

The profit or loss on disposal of a non-current asset is an accounting entry and not a cash flow. For this reason it should not be considered in analysing capital expenditure decisions. True or false? Explain your answer.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Management Accounting

ISBN: 9781760421144

7th Edition

Authors: Kim Langfield Smith, Helen Thorne, David Alan Smith, Ronald W. Hilton

See More Books

Question Posted: Nov 01, 2017 06:25 AM

See More Questions

Explain how a gain or loss on disposal is handled in a capital-budgeting analysis.
Accounting standard IAS16 Property, Plant and Equipment makes a number of recognition, measurement and disclosure requirements with regard to tangible non current assets. The term "non-current asset"...
Explain if the following statements true or false? (a) Income statements are used only by users external to the entity. (b) Expenses are included in the income statement when they are paid, not when...
An employee earns $24 per hour and 1.5 times that rate for all hours in excess of 40 hours per week. Assume that the employee worked 43 hours during the week. Assume that the FICA tax rate is 7.5%...
The following two reactions occur in an ethylene oxide production process: 2C2H4 + O2 ? 2C2H4O C2H4 + 3O2 ? 2C02 + 2H2O A stream containing Equimolar amounts of ethylene and oxygen is joined by a...
You are not alone if your garage is so cluttered that you cannot fit your car inside. According to the Democrat & Chronicle article Seasons cleaning (January 1, 2009), the U.S. Department of Energy...
Acme Corporation (a U.S. company located in Sarasota, Florida) has the following import/export transactions in 2009: LO9 March 1 May 1 August 1 September 1 Bought inventory costing 50,000 pesos on...
The standard labor cost in the production of a pair of Tukor Brand athletic shoes is .30 hours at $15 per hour. During the month of June, 25,000 pairs were produced. Actual labor costs were $110,700...
National Health Corporation ( N H C ) has a cumulative preferred stock issue outstanding, which has a stated annual dividend of $ 8 per share. The company has been losing money and has not paid...
Bargain Rental Car offers rental cars in an off-airport location near a major tourist destination in California. Management would like to better understand the behavior of the companys costs. One of...
What is the diminishing value method of depreciation, and how does it differ from the straight-line method? Why do some businesses prefer to use the diminishing value method of depreciation for tax...
The 'Peal life' explains the factors that influence companies to invest in new technology. Explain the difficulties that arise when traditional cash flow methods of capital expenditure analysis are...
What is the best way for Vikki and Tim to obtain their credit report?
Lucy is using a one-sample test based on a simple random sample of size = 24 to test the null hypothesis = 23.000 cm against the alternative hypothesis < 23.000 cm. The sample has mean 22.917 cm and...
A motorcyclist of mass 60 kg rides a bike of mass 40 kg. As she sets off from the lights, the forward force on the bike is 200N. Assuming the resultant force on the bike remains constant, calculate...
A load downward load P = 400 N is applied at B. It is supported by two truss members with member BA at an angle of 0 = 45 from horizontal and member BC at an 01 = angle of 02 25 from vertical....
Gross profit, defined as Net sales less Cost of products sold increased by $279 million in 2017 from 2016 and decreased by $2 million in 2016 from 2015. As a percent of sales, gross profit was 38.8%...
An electro-magnetic shield is to be made of galvanized steel with conductivity = 1.74 x 106 S/m, and magnetic permeability HR = 80. The thickness of cold rolled steel is in the following table. Gauge...
See Figure P126. The shaft rotating at 310 rpm carries a spur pinion E having 36 teeth with a diametral pitch of 6. The teeth are of the 20, full-depth, involute form. The pinion delivers 20 hp to a...
9.Consider the reaction 3NO2(g)+H2O=2HNO3(aq)+NO(g) where Delta H=-137 kJ.How many kilojoules are released when 92.3g of NO2 reacts?
The Oahu Audio Company manufactures electronic subcomponents that can be sold as is or can be processed further into plug-in assemblies for a variety of intricate electronic equipment. The entire...
Jacque de Paris, a high-fashion womens dress manufacturer, is planning to market a new cocktail dress for the coming season. Jacque de Paris supplies retailers in Europe and the United States. Four...
Western, Corp., produces two products, cigars and chewing tobacco, from a joint process involving the processing of tobacco leaves. Joint costs are $60,000 for this process, and yield 2,000 pounds of...
September 23 for $1,050 each. On December 24 , it sold one of the diamonds that was purchased on July 9 . Using the specific identification method, its ending inventory (after the December 24 sale)...
Madsen Motors's bonds have 13 years remaining to maturity. Interest is paid annually, they have a $1,000 par value, the coupon interest rate is 8%, and the yield to maturity is 10%. What is the...
Builder Products, Incorporated, uses the weighted - average method in its process costing system. It manufactures a caulking compound that goes through three processing stages prior to completion....

The profit or loss on disposal of a non-current asset is an accounting entry and not a

Question:

Step by Step Answer:

This is false The profit or loss on th...View the full answer

Management Accounting

Students also viewed these Advanced Accounting questions