LL LUI Depreciation is regarded as change in Accounting Policy of the

1.	LL LUI Depreciation is regarded as change in Accounting Policy of the entity(1) Depreciation is non-cash and non-operating expense which is to be provided for whether there are profit(m) Net Profit is reflected in higher cash balances and net loss is reflected in lower net worth(iv) Contingent liability is an ascertained liability but its amount and due date are indeterminate
Answer» Answer: LL LUI Depreciation is regarded as CHANGE in Accounting Policy of the entity (1) Depreciation is non-cash and non-operating EXPENSE which is to be PROVIDED for whether there are profit. (m) Net Profit is reflected in higher cash balances and net loss is reflected in lower net worth. Since the asset is part of normal business operations, depreciation is considered an operating expense. Depreciation is one of the few expenses for which there is no outgoing cash flow. ... So, depreciation is a non-cash component of operating expenses. Key Takeaways: It is possible for a company to have positive cash flow while reporting negative net income. If net income is positive, the company is liquid. If a company has positive cash flow, it means the company's liquid assets are increasing. Contingent liability is a unascertained liability but its amount and due date and indeterminate. The occurrence or non occurrence ALONG with the amount of liability that might ARISE is not certain.

LL LUI Depreciation is regarded as change in Accounting Policy of the entity(1) Depreciation is non-cash and non-operating expense which is to be provided for whether there are profit(m) Net Profit is reflected in higher cash balances and net loss is reflected in lower net worth(iv) Contingent liability is an ascertained liability but its amount and due date are indeterminate

Answer»

Answer:

LL LUI Depreciation is regarded as CHANGE in Accounting Policy of the entity (1) Depreciation is non-cash and non-operating EXPENSE which is to be PROVIDED for whether there are profit. (m) Net Profit is reflected in higher cash balances and net loss is reflected in lower net worth.

Since the asset is part of normal business operations, depreciation is considered an operating expense. Depreciation is one of the few expenses for which there is no outgoing cash flow. ... So, depreciation is a non-cash component of operating expenses.

Key Takeaways: It is possible for a company to have positive cash flow while reporting negative net income. If net income is positive, the company is liquid. If a company has positive cash flow, it means the company's liquid assets are increasing.

Contingent liability is a unascertained liability but its amount and due date and indeterminate. The occurrence or non occurrence ALONG with the amount of liability that might ARISE is not certain.

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