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When Preparing Consolidated Financial Statements,which of the Following Is a Subtraction

question 48

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When preparing consolidated financial statements,which of the following is a subtraction in the calculation of cash flows from operating activities under the indirect method?


Definitions:

Salvage Value

The prognosticated worth of an asset at the close of its operational period.

Useful Life

The estimated duration of time that an asset is expected to be productive or useful, beyond which it is likely to be inefficient or obsolete.

Double-declining-balance Method

An accelerated depreciation method that doubles the straight-line depreciation rate and applies it to the undepreciated balance at the start of each period.

Straight-line Method

A method of calculating depreciation for an asset that spreads the cost evenly over its useful life.

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