Explain the cost of having too much cash balance or too little cash balance in a business.

Q: How to incease profitability in a service company if Operating cash does not cover debt?

A: operating cash flows -  cash flows from the operations of the business are known as operating cash…

Q: What the responsibilities of the firm of accountants as far as money laundary is concern.

A: Money laundering is the process of obscuring the source of funds earned through illegal activities…

Q: Cash flow statements help users decide whether a company has enough cash to pay Its debts. True or…

A: A cash flow statement is a written tool for managing finances since it tracks an organization's cash…

Q: Identify if it will Increase, Decrease or No effect.   1.What will happen to the company’s liquidity…

A: 1.What will happen to the company’s liquidity when some of its products are sold from inventory?…

Q: Which of the following is not a business transaction?                                        Sell…

A: Business transactions are measured in money and are recorded in the accounting books.

Q: Consider the following: While accrual accounting information is imperfect, ignoring it and making…

A: Yes, completely agree with the statement. Accrual accounting is a basis of accounting according to…

Q: What is the time value of money and why it is important to accountants?

A: Time value of money is the concept that the value of a dollar to be gotten in the future is not as…

Q: Which of the following is not correct about the negative cash flows? O a. You cannot cover your…

A: Cash flow statement: It is a statement which reports the cash inflows and outflows of a business…

Q: How can a small business invert the A/R cycle so that cash is received before a good or service is…

A: Cash management could be effective if a small business inverts the management of A/R cycle in the…

Q: Cash doesn’t earn interest, so why would a company have a positive target cash balance?

A: The corporation have a positive target balance because of cash plays a vigorous part in the…

Q: What's the difference between a cash business and cash accounting?

A: A business that runs primarily on cash transactions is known as a cash business. The business may…

Q: Purchasing computer equipment for cash will increase total assets, total liabilities, and have no…

A: An accounting Equation is a statement that shows the equality between the resources and the sources…

Q: How do accountants and financial managers differ in their use of financial information? Why is cash…

A: The financial statement represents the progress in the performance of the corporation in generating…

Q: Finally indicate the effect of the transactions to cash flows. Transactions Activity Reason Effect…

A: CFS termed as Cash Flow Statement is the statement which shows the financial performance of the…

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: what does cash burn impact when owning a business?

A: Cash burn- It is the rate  by which a company uses its cash in the business over a period of time…

Q: Accounting statements represent a company’s earnings, but this is not the real cash that a company…

A: The statement that best describes the cash flows: The cash flows that are obtained after subtracting…

Q: Would it be better for the business to have a lot of cash on hand? Why or why not?

A: A business should always have an appropriate amount of cash on hand – i.e. neither too much cash nor…

Q: what are the differences between the income statement and statement of cash flows and can you show a…

A: The financial statements of a company are prepared to measure the financial performance of the…

Q: A negative cash flow from operations, a positive cash flow from investing and a positive cash flow…

A: The cash flow is the cash received from the sale of any product and service of the organization.

Q: When an owner of a proprietary business withdraws cash from the business for personal use, how would…

A: When cash is withdrawn from the business for personal use there will be a credit entry in the cash…

Q: How does paying cash for equipment affect the accounting equation?

A: The journal entry for paying cash for equipment : Account Journal Debit $ Credit $ Equipment…

Q: Why is interest Expense and Depreciation added back, when calculating Free Cash Flow, if Free Cash…

A: Free cash flow (FCF): It is a fiscal performance computation that estimates the amount of operating…

Q: Why is it appropriate to use cash basis accounting in yourpersonal life but not in the business…

A:

Q: Which of the following transactions violates the balance sheet equation? (check all that apply)…

A: Introduction: Accounting equation: Assets = liabilities + shareholders equity. Sum of both…

Q: It is the amount collected by the business in advance from the customers before the business…

A: A. Bank overdraft is facility by the bank to borrow the amount of money B. Outstanding expenses is a…

Q: How does paying cash for purchase of supplies affect the accounting equation?

A: Accounting Equation is as follows: Assets = Liabilities+ Equity (Owner's funds) Each accounting…

Q: hat is the flow of funds in business? Explain

A: As a way to monitor the movement of money in and out of a country's economy, flow of funds (FOF)…

Q: Help Lucy explain to Marion how a company can show a profit on their income statement yet show…

A: Income statement: it shows the revenue generated and expense incurred and the net difference is Net…

Q: What is the possible suggestion of the Accountant or Financial Officer to the owner of the company,…

A: The first priority of a company should be to pay off all the debts, as paying off debts saves…

Q: In which of the following business organization the owners could only lose the money they invested…

A: Answer:   A corporation

Q: The users of financial information can understand the strength and weakness of the business concern…

A: Financial statements of an entity includes; Balance sheet, Income statement, Cash flow statement.

Q: For most businesses, what does cash consist of ?

A: Given: The requirement of the cash in a business.

Q: account that would be decreased when a business makes sale of a Car for cash C

A: By sale of car for cash, car account and cash account will be affected. Car account is credited by…

Q: Which of the following shows how paying cash to purchase supplies will affect a company's financial…

A: Day to day transaction are the basis for the preparation of Company's Financial Statements. If a…

Q: What are the key reasons for financial managers to maintain cash reserves? How much or how little…

A: Introduction: In order to fulfill immediate and short-term financial requirements, cash reserves…

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: Financial statement users assess a business liquidity and solvency to see whether a business is…

A: Solution Concept Liquidity               The term liquidity means how quickly can the assets be…

Q: Which of the following is not an example of a cash outflow?   Select one: a. Purchase of…

A: Cash outflow: It can be defined as the disbursement or payment in cash for meeting the expenditures…

Q: the cash method of accounting is generally selected by the very small firm that wants to help its…

A: Under the cash basis of accounting, the revenues and expenses are recorded as and when it is…

Q: WHY DO WEE NEED CASH FLOW STATEMENTS?  EXPLAIN WHY CASH FLOW STATEMENT IS  A BETTER INDICATOR OF…

A: Statements prepared to provide financial information of the company to its shareholders is known as…

Q: Do you think that cash and profits are the same? Can you think of any business transactions that do…

A: Profits: profit is net income calculated by Subtracting  all expenses form sales or total revenue.…