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Questions and Answers
What is the net capital expenditure if ABC Inc.'s depreciation expense is 90 and PP&E in the balance sheet is 810 and 730 for Year 1 and Year 2 respectively?
What is the net capital expenditure if ABC Inc.'s depreciation expense is 90 and PP&E in the balance sheet is 810 and 730 for Year 1 and Year 2 respectively?
- 100
- 80
- 80
- 70 (correct)
What is the retained earnings affected by?
What is the retained earnings affected by?
- Only net income and dividends (correct)
- Only share capital and profit
- Only operating activities and financing
- Only equity and dividends
What is working capital calculated as?
What is working capital calculated as?
- Accounts payable + Inventory - Accounts receivable
- Accounts receivable - Inventory - Accounts payable
- Accounts receivable + Inventory + Accounts payable
- Inventory + Accounts receivable - Accounts payable (correct)
In what scenario would working capital remain unchanged?
In what scenario would working capital remain unchanged?
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What is the purpose of calculating net capital expenditure?
What is the purpose of calculating net capital expenditure?
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What is the effect of depreciation expense on net capital expenditure?
What is the effect of depreciation expense on net capital expenditure?
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What is the relationship between net income and retained earnings?
What is the relationship between net income and retained earnings?
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What is the purpose of analyzing retained earnings?
What is the purpose of analyzing retained earnings?
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In what scenario would working capital increase?
In what scenario would working capital increase?
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What is the formula for calculating working capital?
What is the formula for calculating working capital?
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