![rheamskeorsey33](/avatars/25568.jpg)
rheamskeorsey33
15.04.2020 •
Business
Last year Ace charged $3,144,667 Depreciation on the Income Statement of Andrews. If Ace sold a fully depreciated piece of equipment at a loss, the effect on Andrews's financial statements would be (all other items remaining equal) .
Select: 1
O Decrease Net Cash from operations on the Cash Flow Statement
O Increase Net Cash from operations
O No impact on Net Cash from operations
O Just impact the Balance Sheet
Solved
Show answers
More tips
- C Computers and Internet How to Download Movies from Torrents?...
- F Food and Cooking How to Make the Perfect Glühwein: Step-by-Step Guide...
- A Animals and plants How to Grow Lime from a Seed: Simple Tips and Interesting Facts...
- S Style and Beauty How to Properly Tie a Tie: 5 Simple Steps...
- C Computers and Internet Dynamically Assigned IP Address: What Is It and How Does It Work?...
- C Computers and Internet How to Check the Speed of My Internet?...
- H Health and Medicine 5 Simple Steps to Quit Smoking for Good...
- C Computers and Internet How to Download Videos from YouTube? Simple Steps to Download Any Content...
- H Health and Medicine What is the Normal Blood Sugar Level in a Healthy Person?...
- S Style and Beauty How to Get Rid of Acne: Scientifically Proven Methods...
Answers on questions: Business
- M Mathematics Which statement is not true? f. a set of ordered pairs describes a function if each x-value is paired with only one y-value. g. a table of values describes a function...
- P Physics What information is needed to calculate the speed of a falling object? A. Height that it was dropped from B. All of these are needed to calculate the velocity C. Volume...
- S Social Studies How to get your lesson teacher fired without letting you parents know that he didn t do anything wrong?...
Ответ:
Just impact the balance sheet
Explanation:
The amount to be recorded in the statement of cash flow relating to the disposal is the actual cash collected,at any rate,the cash received would be an additional inflow in the year,hence it is an increase in cash flow.
The impact of the above transaction would neither increase nor decrease the cash flow from operations since disposal of non-current asset is an investing activity item and no depreciation is charged in the current year
The correct option is just impact impact the balance sheet by crediting equipment account and debiting accumulated depreciation as well as debiting loss on disposal
Ответ:
Just impact the Balance Sheet
Explanation:
I'm not sure how can you sell something at a loss when its value is $0. Did you pay someone to take the asset? Once the asset has been fully depreciated, its value is $0, the company cannot assign any more expenses to it, it cannot be worth -$anything.
It definitely will not have any impact on the income statement, nor cash flows, since obviously if you had sold the asset (worth $0) for $1 at least, you should report a gain.
I'm not sure exactly how this can happen, but if the company accepted a liability in exchange for someone taking the asset away. It is the only way you can sell something for a negative price. Since liabilities would increase, the accumulated depreciation should be reversed to balance the equation. So the balance sheet might be affected in a weird way.
Ответ:
TRUE
Explanation:
ethos is the : the distinguishing character, sentiment, moral nature, or guiding beliefs of a person, group, or institution also : ethic sense 2c.