A non cash expense is an expense that does not require an outflow of cash.  True or false?

Q: cash book

A: At the time of Dissolution , all Accounts of balance sheet transferred to Realisation Account except…

Q: Which item could normally be treated similarly under both cash basis and accrual basis of…

A: Basis of the accounting is defined as the methodology under which the expenses as well as the…

Q: cash on hand is it Asset, Liabilities, Owner’s Equity, Revenue or Expense?

A: Assets are the rights and resources held by the business. Liabilities are the obligations or dues of…

Q: Differentiate cash from accrual method of reporting income and expenses.

A: The basic difference between accrual and cash basis accounting is about timing for recognizing…

Q: A Loss on sale on assets will decrease cash flows True  False

A: Statement of Cash Flows: Statement of Cash Flow is one of the main four financial statements,…

Q: Revenue and Expense Accounts Are revenue and expense accounts equal to equity in how cash is a part…

A: Revenue: Revenues are earnings of business by sale of goods and services in business. It is earned…

Q: What information does the statement of cash flows provide that the balance and the income statement…

A: Cash Flow Statement: Statement of Cash Flow is one of the main financial statement which reports…

Q: In contrast with cash basis accounting, what is accrual accounting? Explain

A: The question is based on the concept of Financial Accounting.

Q: rue or false. a decrease in cash assets is a debit?

A: Asset represents resources of the entity that are used in the process of revenue generation of…

Q: Which of the following is not an operating cash flow? collection of cash from receivables payment of…

A: Cash flows from operating activities: It is a section of Statement of cash flow that explains the…

Q: If the balance in Prepaid Expenses increased during theyear, what action should be taken on the…

A: Increase in Prepaid Expense means that cash is paid for the future expenses in advance.

Q: Non-business cash receipts should be included on a cash flow statement.   A.   True B.   False

A: Non business cash receipt means a receipt which is not related with business i.e it is related with…

Q: Which type of adjustment occurs when cash is either collected or paid, but the related income or…

A: The income and expenses are reported in the income statement where expenses are deducted from the…

Q: Quick assets include cash,  temporary investments,  inventory,  and receivables.   True or false?

A: Quick assets: Quick assets refer to those assets that can be immediately and easily converted into…

Q: If cash is received from a customer in the current period, but the related performance obligation is…

A: Accounting principles are general guidelines that are used by the accountant in preparing the…

Q: Assume that the assets are converted to cash at the estimated current values and the business is…

A: 1. When a company liquidates, there are various creditors a company has to pay. Types of creditors…

Q: These are those which do not give rise to a right to receive (or an obligation to deliver) a fixed…

A: As per IAS 21, Effects of changes in foreign exchange rates, the monetary items are those items that…

Q: What is the operating cash flow or OCF? Explain why interest paid is not a component of operating…

A: Note:  Since you have asked multiple questions, we will solve the first question for you. If you…

Q: Which of the following states that a transaction is not recorded in the books of accounts unless it…

A: The accounting system is based on various accounting principles.

Q: TRUE OR FALSE. If the statement is INCORRECT, explain why the statement is INCORRECT. 1. The cash…

A: The balance sheet represents the financial position of the business with assets and liabilities on a…

Q: Under the cash basis of accounting, revenue is recorded       When earned       When realized…

A: Accrual basis: Under accrual basis accounting, revenue and expenses are recognized when they are…

Q: Th e assumption that the eff ects of transactions and other events are recognized when they occur,…

A: Given statement is: The assumption that the eff ects of transactions and other events are recognized…

Q: Is revenue earned the same as cash collected?  Why or why not?

A: Introduction: Cash basis accounting: Only cash transactions are recorded. No credit transactions are…

Q: What information does the cash flow statement reveal that the other necessary financial statements…

A: The answer:

Q: What is the difference between cash expenses and non cash expenses?

A: Rent expense, salary expenses, insurance expense, depreciation expense, amortization expense, and…

Q: Which of the following is not a motive for holding cash? A -precautionary motive B- transaction…

A: Cash is the current assets to the company which is hold for the purpose of reserving or completing…

Q: If accrued liabilities payable have increased during a period a. expenses on an accrual basis are…

A: Meaning of Accrued Liabilities Payable  An accrued liability Payable is an expense that a business…

Q: Does the statement of cash flows report only transactions that cause an increase or a decrease in…

A: Definition:   Statement of cash flows: This statement reports all the cash transactions which are…

Q: Perhaps the most noteworthy item reported on an income statement is net income—the amount by which…

A: Income Statement:   It is a financial statement prepared by an organization to report the net profit…

Q: IWhich of the following transaction does not involve a cash flow?

A: Cash flow means inflow as well as outflow of the cash and cash equivalent and it also involves…

Q: ash-basis accounting produces a measure called net operating cash flow. Des

A: Cash basis accounting: According to cash basis of accounting, revenue should be recognized at the…

Q: Which item could normally be treated similarly under both cash basis and accrual basis of…

A: Cash basis of accounting is a system in which all revenues and expenses in cash are recorded for…

Q: occur when a company receives cash before it can recognize revenue or when a comp. pays cash before…

A: Deferrals refers receipt or payment is done but to be recognised later. Estimates refers to a rough…

Q: received from a customer for which Services have not been provided ? would it be accrued expenses,…

A: The accrual basis accounting records the revenue and expenses when they are incurred irrespective of…

Q: In the calculation of cash from operating activities, depreciation is added back because it is: A.…

A: Indirect method of statement of cash flow involves a reconciliation from profit before tax,…

Q: Which of the following accounts would never be reported in the income statement as an expense?…

A: generally all the temporary accounts are closed at the end of fiscal year to the income…

Q: Explain the difference between cash and accrual accounting.

A: Accounting: Accounting is a system, or a process of collecting and organizing economic transactions,…

Q: So, should I be using accrual rather than cash-basis accounting?

A: Introduction : The cash and accrual basis of accounting are two accounting procedures that are now…

Q: Which of the following is NOT an acceptable basis on which to measure an expense? A cash outflow. O…

A: Measurement of expenses defines a projection of expenses to be incurred in a time frame or for an…

Q: sing the indirect method to calculate net cash provided by operating activities, a decrease in…

A: Introduction:- Under the indirect matter calculation of cash flow statements the following…

Q: Unearned revenue adjustments are needed when cash is received before ?revenue is earned False ( True

A: The deferred revenue is the amount received by the business entity from customers before providing…