Differentiate cash from accrual method of reporting income and expenses.

Q: Classify the following cash flows as either operating (O), investing (I), or financing (F)…

A: Statement of cash flows reports cash inflows and outflows under three activities section, which are:…

Q: Describe the cash flow activities reported on the statement of cash flows?

A: Introduction: A cash flow statement details the amount of cash and cash equivalents entering and…

Q: Which approach makes use of net income and which way makes use of cashflow

A: The cash flow statement is the direct way, and the indirect way.

Q: How calculate accumulated cash flow, discounted cash flow and Accumulated discounted cash flow?

A: For calculating the accumulated cash flows we have to start from year 1 till the year when pay- back…

Q: The process of payment of cash for expenditures is known as: O a. Disbursement O b. Expenditures O…

A: An expenditure is amounts used by a business, organization, or corporation to acquire new assets,…

Q: Describe the procedure to prepare Cash Flow Statement.

A: A cash flow statement consists of 3 parts namely Operating, Investing and Financing Operating…

Q: Explain the financial presentation and also classification of cash and cash equivalent. (Write a…

A: •Cash and cash equivalents includes cash, assets immediately convertible into cash, bank balance and…

Q: Calculate the cash discount and the net amount due the transaction (in $).

A: A reduction in the amount of invoice price that a company provides to its customer to motivate them…

Q: Classify the following cash flows as either operating (O), investing (I), or financing (F)…

A: Statement of cash flows:

Q: Define cash-basis net income.

A: Cash basis of accounting: Cash basis of accounting refers to the recognition of financial…

Q: How to adjust net income to cashflow.

A: In cashflow there are 2 methods for calculating operating cash flow, they are: a. Direct Method b.…

Q: Briefly explain the difference between cash accounting and accrual accounting. State two examples…

A: Cash Accounting: A form of accounting in which receipts are reported during the period in which they…

Q: What is Cash flow statement?

A: Cash Flow:-Movement of cash or cash equivalent as inflow or outflow either in real or virtually is…

Q: Show how to calculate cash payments for selling and administrative expenses, and cash payments for…

A: The cash payment against an expense refers to the payment made during the accounting period for that…

Q: describe the steps in the preparation of direct and indirect cash fl ow statements, includinghow…

A: Statement of cash flow is a financial statement that shows how changes in balance sheet accounts and…

Q: Explain the use of a worksheet in preparing a statement of cash flows

A:

Q: Explain the differences between cash and accrual accounting.

A: Account: A record, that documents or records the change in assets, liabilities, or equity for a…

Q: Describe Financing cash inflows that includes cash received.

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

Q: What is an income statement? Explain the components ( or equation) of the statement of cash flows.

A: Financial statements are those statements and reports which are prepared at the end of accounting…

Q: Define Cash-basis accounting.

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

Q: What is the difference between income statement and statement of cash flows.

A: Cash flow statements are the statements that determine the inflow and outflow of cash from three…

Q: How to determine cash portion of retained earnings

A: Retained earnings are that part of profit which is reinvested in the business. It is the amount left…

Q: Briefly state the purposes of a statement of cash flows.

A: Meaning of Cash Flow Statements Cash Flow Statements provide information about the movements in cash…

Q: Where is cash received shown in the statement of cash flows?

A: Cash Flow Statement refers to the account statement that outlines amount of cash and cash…

Q: Distinguish between the gross and net methods of accounting for cash discounts.

A: Cash discount: A cash discount is a reduction in the amount that is to be paid by the credit…

Q: Explain Cash versus Accrual Accounting.

A: Cash basis accounting: Cash basis accounting is the method of accounting that record revenues only…

Q: Cash flow may be represented as being determined from: -receivables -operating income -revenue…

A: Cash flows include the net amount of cash and cash equivalent of the business that shows the in and…

Q: Why is it desirable to use a worksheet when preparing a statement of cash flows? Is a worksheet…

A: A Cash flow statement is a financial statement that provides summarised information regarding cash…

Q: Classify the following cash flows as either operating (O), investing (I), or financing (F)…

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

Q: Distinguish between cash basis and accrual basis of account.

A: Accounting: Accounting is an art of recording, classifying, analyzing and summarizing the financial…

Q: Can you give some explanation of why Amortization Expense is included as a source of cash in a cash…

A: In indirect  method  of cash flow statement  we add back amortization expense  to net income  in…

Q: Define cash disbursements.

A: Cash disbursement, also known as money installments, in auditing refers to installments made by an…

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: Differentiate the cash basis of accounting from the accrual basis of accounting.

A: Difference between cash basis and accrual basis: Cash basis accounting:  Under this method, income…

Q: Discuss the difference in Accrual and Cash Basis for accounting.

A: In this question, we are required to mention the difference between cash basis and accrual basis of…

Q: define accrual and cash basis accounting.

A: Answer: Accrual Accounting: In accrual basis accounting, revenues and expenses are recognized once…

Q: Differentiate between cash inflows and cash outflows?

A: Cash flows refer to the movements of cash into and out of a business, commonly categorized as…

Q: What does the statement of the cash flow report?

A: Statement of cash flow is one of the type of financial statements generally prepared by a company.

Q: What general guidelines can you provide for interpreting the statement of cash flows?

A:

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: Why is it necessary to use an income statement, balance sheet, and additional information to prepare…

A: A Cash Flow Statement is a part of the Financial Statement of a company. It literally means a…