cash generated from operations usually larger than net profit

Q: The operating cash flow margin describes how much net cash the business generated from each dollar…

A: Introduction:- A cash flow statement denotes total amount cash is inflows and cash outflows your…

Q: In preparing cash flows provided by operating activities using the indirect method,…

A: Cash flows from operating activities is one important section of cash flow statement, which shows…

Q: Why is an analysis of the company’s cash balance important?

A: Cash: Cash is the money which is readily available in the form of currency. Since cash can be easily…

Q: What are Cash Flows? Explain why the statement of Cash Flows provides useful information that goes…

A: The financial statements of a company are prepared by the management to deliver the financial…

Q: In which direction (positive or negative) would you normally expect each of the following cash flow…

A: The cash flow statement indicates the inflow and outflow of cash within the company in the…

Q: Discuss the factors that are likely to influence the desired level of cash of a company

A: Cash involves cash in hand or bank balance or cash equivalents that can be immediately convertible…

Q: Of the following questions, which one would not be answered by the statement of cash flows? A.…

A: Statement of cash flow shows the cash outflows and cash inflows of the business entity.

Q: how can the gain on the sale of invesment be a deduction from net income in determining the cash…

A: Statement of cash flows: Cash flow statement is also known as statement of cash flows. It is a…

Q: Is the profit that a business makes a reliable indicator of its cash balances? What are the…

A: No, the profit is not the reliable indicator of its cash balances. Cash Flow is the cash collected…

Q: Cash generated from operations is reflected in the

A: 1. While preparing a cash flow statement we have to calculate Cash flow from operating activities.…

Q: Give two difference between net profit and cash from operations.

A: Difference between net income and cash from operations:Net income is the profit generated by the…

Q: Which of the following would be considered a cash outflow for investing activities? a. cash paid to…

A: The correct option is: (d) Cash paid to purchase equipment

Q: What is the difference between the direct method and the indirect method of presenting the cash flow…

A: Statement of cash flows: Statement of cash flow is a financial statement that shows the cash and…

Q: Illustrate how a firm generates cash flows and summarizes thesources and uses of cash during its…

A: Cash Flow Statement:   It is a financial statement prepared by a company to report their cash…

Q: How much should be reported as cash inflows from operating activities?

A: Operating activity refers to the normal business activity of a company in which transaction like…

Q: operating activities

A: Operating activities include sales and changes in working capital. investing activities include…

Q: What is the net cash provided by investing activities?

A: Introduction Cash flow statement: Cash flow statement is the financial statement which reports cash…

Q: What kind of operations are listed on the cash flow statement? Is it important the order these…

A: A cash flow statement is a basic financial report that depicts a company's cash inflows (cash…

Q: Is it possible for a company to have significant net income in the same time period that net cash…

A: Yes! It is possible because net income is based on accrual concept i.e. income is recognized as and…

Q: How much is the net cash flows from operating activities?

A: The cash flow statement is one of the important financial statements that have to be prepared by the…

Q: what will be Net Cash Generated from Operating Activity

A: Cash flows from operating activities is an important element of cash flows statement, which shows…

Q: is the profit that a business makes a reliable indicator of its cash balance?

A: The profit is not a reliable indicator of the cash balance. This is because there are a number of…

Q: What are some examples of cash flow from operating activities?

A: Cash Flow Statement is a financial statement that summarizes the inflows and outflows of cash in the…

Q: Compute the net cash provided by operating activities.

A: Cash flows from operating activities refer to the inflow and outflow of cash related to business…

Q: Net corporate cash flow is a metric created by cash-basis accounting. Explain the metric in detail

A: Accounting is the process of documenting a business's financial transactions. These transactions are…

Q: Why is it necessary to convert profits (as determined in the income Statement) to cash nows?

A: Definition of Profit: Profit is also known as financial gain. It is the difference between revenue…

Q: mpany’s operating profit in a particul

A: Operating profit is the profit arrived at by deducting cost of goods sold and operating expenses…

Q: What is the principal advantage and the principal disadvantage of the direct method of reporting…

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

Q: What is the principal disadvantage of the direct method of reporting cash flows from operating…

A: Cash flows from operating activities is an important section of cash flow statement which shows all…

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: What are the major advantages of the indirect method of reporting cash flows from operating…

A: Cash flow statement provides details of all cash inflows and cash outflows of the organization for a…

Q: Which of the following has a different effect on net profit than it does on cashflow? A.Cash sale…

A: Net Profit will be affected by revenues and expenses whether accrual or cash basis. On the other…

Q: How must profits and losses be handled when generating the operational portion of the cash flow…

A: The cash flow statement assesses a company's capacity to manage its financial situation, namely how…

Q: Which of the following is not part of the elements of Cash flow statements? Net change in cash and…

A: Activity based costing (ABC) with the help of cost drivers, allocates the overheads to cost pools…

Q: FINANCING ACTIVITIES How much is the net cash provided by financing activities?

A: Cash flows from financing activities is an important section of cash flow statement, which shows all…

Q: Net cash flow from operating activities

A: A cash flow cash flow statement that highlights all cash flow a firm gets from ongoing activities as…

Q: How much is the net cash flow from operating activities using indirect method?

A:

Q: Net income is not the same as net cash provided by operating activities. Net cash provided by…

A:

Q: Calculate the cash flow from operating activity

A: Cash flows from operating activities is an important section of cash flow statement which shows all…

Q: Define Net cash provided by operating activities

A: Cash Flow statement: The statement which summarizes the net amount of cash disbursed and received in…

Q: Cash-basis accounting produces a measure called net operating cash flow. Describe about the measure.

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