In cash flow estimation, depreciation shelters company's income from. I am not satisfy give downvote A. expansion B. salvages C. taxation D. discounts

To prepare the statement of cash flows using the indirect method: Group of answer choices A)A decrease in inventory is added to net income. B)A purchase of a machine is subtracted from net income. c)Cash paid for dividends is added to net income. d)A decrease in accounts payable is added to net income. e)None of the above

Why is the depreciation tax shield a component of analyzing investment decisions? O A. Depreciation causes a cash outflow that is added to determine net income. O B. Though no cash was paid out, depreciation was included on the tax return, which caused the company to pay taxes on the amount of depreciation. O C. Depreciation lowers cash outflows for income taxes paid. O D. Depreciation creates cash flows that do not appear on the income statement.

What effect will the cash payment of an account payable have on the Balance Sheet?   Group of answer choices Decrease an asset and decrease stockholders’ equity Decrease an asset and decrease a liability Increase an asset and increase a liability Increase one asset and decrease another asset

Which of the following statements about the direct and indirect methods for presenting Cash Flow Statement is NOT true?  According to the indirect method, cash flows begin with net income or loss and is followed by subsequent additions to or deductions from that amount for non-cash revenue and expense items, resulting in cash flow from operating activities. The direct method is based on use of actual cash inflows and outflows from a company’s operations. Using direct and indirect methods leads to different amounts shown as cash flow from operations, investing, and financing activities. The cash flow statement, income statement and balance sheet are interconnected: the cash flow amount is equal to the corresponding income statement amount plus or minus the change in the related balance sheet account.

In the Statement of Cash Flows, depreciation is ignored because it is a non cash expense. Group of answer choices True False

Items that are added back to net income in determining cash provided by operating activities under the indirect method, do not include: Group of answer choices an increase in inventory loss on sale of equipment depreciation expense an increase in accounts payable