Accountıng Iı Deneme Sınavı Sorusu #1070446

"It has no effect on cash, but like all other expenses decreases net income. So in order to reconcile net income to net cash flows from operations we have to add it back to net income."

Which of the following terms is described above?

Gains and Losses on the Sale of Long Term Assets

Depreciation Expenses

Changes in the Current Asset and Current Liabilities

An increase in a current liability

An decrease in a current liability

Yanıt Açıklaması:

Depreciation Expenses: As you can remember from previous chapters, depreciation has no effect on cash, but like all other expenses decreases net income. So in order to reconcile net income to net cash flows from operations we have to add depreciation back to net income.The correct answer is B.

PAYLAŞ:

SORUNUN CEVABI: B

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