The Following Information Relates to Equipment and Related Accounts of De

question 49

Multiple Choice

The following information relates to Equipment and related accounts of De Soto Corporation:

-Refer to Exhibit 13-3. Assuming De Soto uses the indirect method, the depreciation expense that would be added to net income in computing cash flows from operations would be

• A) $9,000
• B) $15,000
• C) $21,000
• D) $23,000

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Definitions:

Net Assets

The total assets minus total liabilities of an entity, representing its net value or equity.

Productive Assets

Assets that directly contribute to the production and income generation in a business, such as machinery, buildings, and equipment.

Incentive Schemes Systems

Programs designed to motivate and reward employees for meeting or exceeding performance and productivity targets.

Goal Congruence

The alignment of the objectives of individuals or groups with the broader goals of the organization to ensure everyone works towards the same targets.