Timing of cashflows, Cost Accounting

Assignment Help:

The time of cashflows for the project are as follows;

  • Operating Income (rent) is received annually, in advance. For NPV purposes they are assumed to have been received at the beginning of the year.
  • Operating Expenses are averaged over the year and are assumed to be paid in the year they are incurred, unless otherwise stated.  For NPV purposes they are assumed to have been paid at the end of the year.
  • Operating account Interest Income and Expense are received/expended at the beginning of each year (based on balances at the end of the previous year).
  • Receipts for the disposal of assets (including final disposal of the project) are received at the beginning of each year immediately following the last year of their useful life or identification for disposal.
  • Expenditure for the acquisition and/or replacement of assets is made at the beginning of the year in which they are acquired.
  • Loan payments are made at the beginning of each year (ie payments in advance). The final loan payout (if applicable) is made on the first day of the year following the disposal of the project.
  • Tax receipts and payments occur on the first day of the year following the year they are incurred.
  • Capital receipts and payments are made at the beginning of the year they are received/expended.

Related Discussions:- Timing of cashflows

Prepare the journal entries to record depreciation, Moore Corporation follo...

Moore Corporation follows a policy of a 10% depreciation charge per year on all machinery and a 5% depreciation charge per year on buildings (the corporation uses the nearest full

Break-even calculations, Break-Even Calculations As they say, a picture...

Break-Even Calculations As they say, a picture is significance a thousand words, and this is undoubtedly true for the CVP graphic just presented. Though, everyone is not an art

Qualitative characteristic of understandability means, The enhancing qualit...

The enhancing qualitative characteristic of understandability means that information should be understood by a those who are experts int eh interpretation of financial informat

Select the correct answer, If fixed costs are $743,122 and variable costs a...

If fixed costs are $743,122 and variable costs are 69% of sales, what is the break-even point in sales dollars? Select the correct answer. A. $512,754 B. $2,397,168 C. $1,255,876 D

Determine the ratio of the sales, 1) Jodie received a $2000 college entranc...

1) Jodie received a $2000 college entrance scholarship. Nine month later Brian was awarded a $2100 academic proficiency scholarship for his outstanding grades in the first year of

Analysis of fund flow and cash flow statements, After you have studied this...

After you have studied this section, you should be capable to: know the idea of funds flowing by a business in a dynamic situation understand the role of working capital

Disadvantages of using standard costs, Purposes of standard cost accounting...

Purposes of standard cost accounting connection - suppose you were a management consultant and the client asked you the advantages and disadvantages of using standard costs and cos

Statements on tax standards, Compare the American Institute of CPAs' (AICPA...

Compare the American Institute of CPAs' (AICPA) Statements on Tax Standards (SSTS) and the Treasury Department Circular 230 rules to practice before the Internal Revenue Service (I

Calculate the break-even level of sales, Me ole cock spaniel plc. makes 3 p...

Me ole cock spaniel plc. makes 3 products, details as follows:   Apples (£)       Pears (£)         Cockneys (£)   Selling price        60               80

Internal users of accounting information, Describe the ways in which the ne...

Describe the ways in which the needs of internal and external users of accounting information are the same and different.

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd