Adding depreciation expense to net profit equals:
A) cash flows from operations.
B) total revenues.
C) the depreciation tax shield.
D) profit before tax.
Answer: A) cash flows from operations.
Business
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On August 14, First Avenue Bank lent $240,000 to City Cafe on a 75 day, 6% note. What is the maturity value of the note? (Use a 360-day year and round answers to the nearest dollar.)
A) $242,959 B) $243,000 C) $240,000 D) $254,400
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Consistent with ASC Topic 842, at the inception of the lease, lessees must recognize a “right-of-use” asset for which type of lease(s)?
a. Finance leasesIncorrect b. Finance leases and operating leases c. Finance, short-term, and operating leases d. Finance leases and short-term leases
Business