Determining how long an asset will benefit the company

Assignment Help Financial Accounting

Reference no: EM13914558

Indicate whether each of the following actions is pri- marily related to (a) acquisition of long-term assets, (b) evaluating the adequacy of financing of long-term assets, or (c) applying accrual accounting to long-term assets:

1. Deciding between common stock and long-term notes for the raising of funds.

2. Relating the acquisition cost of a long-term asset to the cash flows generated by the asset.

3. Determining how long an asset will benefit the company.

4. Deciding to use cash flows from operations to purchase long-term assets.

5. Determining how much an asset will sell for when it is no longer useful to the company.

6. Calculating free cash flow.

Reference no: EM13914558

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