How are most of the balance sheet assumptions determined? Option: Based on net sales, Based on industry averages, Based on gross block, Based on previous year's data

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How are most of the balance sheet assumptions determined?

Based on net sales

Based on industry averages

Based on gross block

Based on previous year's data

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What does the term 'Gross Block' typically represent in a company's balance sheet?

"The total value of the company's inventory"

"The total revenue generated by the company in a fiscal year"

"The combined value of the company's physical assets"

"The sum of all outstanding liabilities"

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How is the net block of an asset calculated?

Gross block multiplied by the accumulated depreciation

Accumulated depreciation divided by the gross block

Gross block plus accumulated depreciation

Gross block minus accumulated depreciation

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What is the formula for calculating netblock?

Netblock = Gross block - Accumulated depreciation

Netblock = Accumulated depreciation - Gross block

Netblock = Gross block / Accumulated depreciation

Netblock = Gross block + Accumulated depreciation

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How can the method of proportions be used to forecast depreciation?

By calculating the ratio of depreciation to gross block for historical years and applying the average to future years.

By using complex statistical models to predict future depreciation trends.

By dividing the current year's gross block by the previous year's depreciation.

By multiplying the previous year's depreciation by the current year's gross block.

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How are Sundry Debtors typically considered in financial modeling?

"As a percentage of Total Assets

"As a percentage of Net Sales"

"As a percentage of Gross Block"

"As a fixed value"