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Give Two Explanations for Why the Amount of Cash Outflow

question 89

Essay

Give two explanations for why the amount of cash outflow for equipment for the year might not equal the increase in the Equipment account balance from one balance sheet date to the next.


Definitions:

Direct Exporting

The process by which a company sells its products directly to buyers in a foreign market without the use of an intermediary.

Antidumping Duty

A tariff imposed by a government on imported goods thought to be priced below fair market value to protect domestic industries.

Tariff

A tax on imported goods.

Just Compensation

The fair market value that must be paid for property taken by the government for public use, as guaranteed by the Fifth Amendment.

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