For any investment, the costs and benefits should be measured in terms of cash flows rather than earnings Give three points supporting the above statement

Q: Which method use net income and which use cashflow.

A: Statement of cash flows:   It is one of the financial statement that shows the cash and cash…

Q: Differentiate between net cash flow and accounting profit

A: There are 2 elective standards accessible for discovering future monetary advantages of a…

Q: Explain the difference between net cash flow and operating cash flow. What causes these two numbers…

A: Net cash flow is the excess of cash inflows over the cash outflow or it is calculated by deducting…

Q: How can we determine the Cash Flow Statement with only Operating and Investing Activities?

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

Q: Define each of the following terms:f. Accounting profit; net cash flow; NOPAT; free cash flow;…

A: Accounting profit is the net profit of a firm after deducting a company’s revenue from its expenses.…

Q: Under the principle of cashflow estimation, why it is important that cashflow should be measured on…

A: A cash flow statement determines the net cash inflows and outflows from an organization during a…

Q: Explain the difference between: a) Cash Flows versus Accounting Estimates b) Static Payback Period…

A: When a company prepares financial statements or budgets it has to estimate various amounts. The…

Q: What three aspects of cash flows affect the valueof any investment?

A: The cash generated over and above required by business operations and capital expenditure is called…

Q: Identify three factors that may cause net income to differfrom net cash flows from operating…

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

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: 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: a) What is the difference between Accounting Income and Cash Flow? Which do we use when making…

A: Answer: As per Q/A guidelines, we have answered first question. Please repost to be answered by…

Q: We can separate cash return on assets into: a. Cash flow to sales and return on assets. b. Profit…

A: Cash return on assets is: = Cash flows / Average Assets

Q: You are also expected to explain the silent features of these 3 methods? Asset-Based Valuation:…

A: Asset-based valuation is a form of valuation in business that focuses on the value of a company's…

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: a) Define both Financing Cash Flows and Investing Cash Flows.  b) For Financing Cash Flows, explain…

A: Cash flow from financing activities (CFF) is a section of a company’s cash flow statement, which…

Q: Identify, at least, three reasons that make the profit for the reporting period not equal to the net…

A: Net cash inflow refers to the cash generated by an entity from its business after deducting all the…

Q: Is net operational cash flow a better indicator of performance than accrual-based net income in most…

A: Earned income is reported on a company's income statement using the accrual accounting technique…

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: What is the difference between a cash basis and an accrual basis measure of performance?

A: Cash Basis :- It is an Accounting Method where Revenue and Expense are identify at the time of…

Q: Using the given above, compute for the net cash flow generated by/used in a) Operating Activities…

A: Cash flow statement means the statement which shows the cash flow in or out of business enterprises…

Q: Explain the purpose of the cash flow statement

A: The cash flow statement is an essential part of the financial statements of the organization. It is…

Q: What is cash flow ? A. The sum of expenses and income  B. The difference between expenses and income…

A: Cash flow refers to movements of cash from an organization. Cash is the most liquid asset on the…

Q: Which of the following returns is consistent with contractual cash flows that are SPPI?…

A: (1) S.P.P.I. Test - The solely payments of principal and interest test. (2) This requires that the…

Q: The net present value of an investment represents the difference between the: present value of cash…

A: To determine the value of NPV, NPV is the difference between the present values of future cash flows…

Q: List and explain t the difference between profit and cash flow

A: Cash flow:- It is the movement of money or flow of money within the organization. Money can either…

Q: Distinguish between operating cash flow and net income.

A:

Q: What are the differences between cash flows from operating activities and the elements of an income…

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

Q: What is the difference between an income statement and a cash flow statement? Please also explain…

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

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: How can we show mathematically that the two approaches cash flow from operation and net income are…

A: Mathematically, the following can be represented as:

Q: Which of the following are not tools of management accounting a. Cash Flow Statement b. Ratio…

A: a. Cash Flow Statement - It records the movement of cash from one period to another . It shows the…

Q: Differentiate between net income, EPS, EBITDA,net cash flow, NOPAT, free cash flow, MVA, and EVA.…

A: The given terms are the financial metrics which defines the accounting and economic profit at…

Q: ch is easier to calculate

A: FCFE is the amount of cash a business generates that is available to be potentially distributed to…

Q: Is Cash Flow more important than  Accrual Based Income?

A: Cash flow: It can be defined as the aggregated balance of cash and cash equivalents that are…

Q: Differentiate between net income and net cash flow?

A: Net Income is the difference between revenue and expenses recognized in an accounting period.Net…

Q: Which category of the statement of cash flow is considered as the most important? Why?

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