Question

If current liabilities increase, what is the effect on cash? What about a decrease in current liabilities?

Expert Solution

Want to see the full answer?

Check out a sample Q&A here
Blurred answer
Students who’ve seen this question also like:
Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN: 9781947172685
Author: OpenStax
Publisher: OpenStax College
Not helpful? See similar books
Principles of Accounting Volume 1
Principles of Accounting Volume 1
Statement Of Cash Flows. 8MC
marketing sidebar icon
Want to see this answer and more?
Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*
*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.

Related Accounting Q&A

Find answers to questions asked by students like you.

Q: What happens to cash if the value of other current assets rises? Is it possible that current assets,…

A: Here is the answer :

Q: If current assets other than cash increase, what is the effect on cash? What about a decrease in…

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

Q: What is discounting and why do we discount future cash flows?

A: A cash flow statement is a financial statement that shows how much cash and cash equivalents are…

Q: How do I find what the net increase or decrease is in cash on a Statement of Cash Flow?

A: Add the net cash flows from all three activities of statement of cash flows (i.e. operating…

Q: the discount rate that equates the present value of the cash inflows with the present value of the…

A: In capital budgeting decisions calculate net present value is very important.

Q: How is IRR calculated with unequal net cash inflows?

A: Definition:   Internal rate of return method (IRR): Internal rate of return method is one of the…

Q: What is meant by an incremental cash flow? What do you need to ask yourself when deciding whether a…

A: When a firm takes on a new project, there is new cash flow associated with this new project. The…

Q: What is the present value of the cash flows?

A: Information Provided: Discount Rate = 7.83% Cash flow Year 1 = $2570 Cash flow Year 2 = 0 Cash flow…

Q: It is the difference between the present value of cash inflows and the present value of cash…

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

Q: What is the effect on cash when current liabilities increase? A. Cash increases by the same…

A: Cash flow from operating activities: The cash flow from operating activities section is the first…

Q: Why are the net present value and internal rate of return considered discounted cash flow methods?

A: Net present value is the comparison between the net cash inflows received from a future investment…

Q: Lowering the discount rate on a cash flow will its present value.

A: Discount Rate: It is the rate at which the cash flows over the period are discounted.

Q: How is payback calculated with unequal net cash inflows?

A: Click to see the answer

Q: How is payback calculated with unequal net cash inflows?

A: Payback period: Payback period is defined as the amount of time that will take for recovering the…

Q: How can information based on past transactions be usedto predict future cash flows?

A: Past transactions can be used to predict future cash flows is a true statement.

Q: What is the process of solving a cash flow for an unknown interest rate?

A: Time Value of Money: According to the concept of TVM, the company always interested to know the PV…

Q: How can information based on past transactions be used to predict future cash flows?

A: Free cash flow: It describes the net cash provided from operating activities after making required…

Q: What is the incremental cash flows from switching credit policies?

A: Incremental cash flow is the extra cash flow a business will generate by investment in a new project…

Q: What is the difference between the sources (in nows) and uses (out nows) of cash?

A: The question is based on the concept of cash flow statement and cash flow analysis for a particular…

Q: What are net operating loss carryforwards and how can they provide cash savings?

A: Click to see the answer

Q: What are the discounted cash flow techniques?

A: Answer: Discounted cash flow is nothing but a method of valuation used to measure an investment…

Q: What are the discounted cash flow techniques?

A: Discounted cash flow (DCF) is a valuation method used to estimate the value of an investment based…

Q: What is the value in today's dollars of the set of cash flows you have been offered?

A: Present Value: It is the present worth of the annual cash flows that are discounted at a particular…

Q: The difference between the sources (in nows) and uses (out nows) of cash represents the net cash…

A: Answer: Cash flow is nothing but the inflows and outflows of the business income. Cash flow is…

Q: What is the essence of the discounted cash flow methods?

A: Click to see the answer

Q: What is the essence of the discounted cash flow methods?

A: Click to see the answer

Q: What should the net change in cash section of the statement of cash flows always reconcile with?

A: Cash flows statement is a summary statement which provides details of all the cash inflows and cash…

Q: In preparing a cash flow statement which of the following is a cash inflow? A. Issue of Debentures…

A: When Company issues the debenture, then the debenture holder has to pay the amount for the…

Q: What should the net change in the cash section of the statement of cash flows always reconcile with?

A: Statement of Cash Flows: It is a financial statement that shows the cash and cash equivalents of a…

Q: What is incremental cash flow?

A: Cash flow is the movement of cash in the company. While making an investment in any project, cash…

Q: The difference between cash inflows and cash outflows is known as what?

A: Cash flow is defined as the flow of money that comes in (cash inflow) and out of your (cash outflow)…

Q: On what does the interest paid on a cash investment depend?

A: Cash investment An investment (short-term) under which one makes a deposit the cash and also…

Q: What are the best startegy for flactuating cash flow?

A: The movement of funds into or out of a business is referred to as cash flow.Inflows are represented…

Q: How much is the net cash used in investing activities?

A: The net cash used in investing activities is the second section of cash flow statements which state…

Q: Describe the discounted cash flow techniques?

A: Following are the discounted cash flow techniques: Net present value (NPV) is the contrast between…

Q: Where are gains and losses related to cash flow hedgesinvolving anticipated transactions reported?

A: Derivatives: Derivative is a product whose value is derived from underlying assets called base.…

Q: Give some examples of Discounted cash flow?

A: Discounted cash flow: It's a time value method to calculate the project or investment value  using…

Q: cash inflows are greater than cash outflows, then there is a new ( INCREASE / DECREASE) in Cash.…

A: Cashflow represents the inflows and outflows of cash. When the cash flows into the business, there…

Q: “The greater the discount rate, the greater the present value of a future cash flow.” True or false?…

A: Present Value: The value of today's amount expected to be paid or received in the future at a…

Q: What might RR do to reduce its target cash balance without harming operations?

A: Target cash balance can be defined as the ideal cash level that a company seeks to hold in reserve…

Q: What is the cash conversion cycle? What is its equation?

A: The CCC tells firms that in how many days’ firms will realize its cash from its operations. It is a…

Q: Is Cash Flow more valuable than Accrual Income?

A: Accrual income is more useful for analyzing business performance than cash flow for number of…

Q: What kinds of questions about future cash flows do investors and creditors attempt to answer with…

A: Click to see the answer

Q: What kinds of questions about future cash flows do investors and creditors attempt to answer with…

A: Income statement: The financial statement which reports revenues and expenses from business…

Q: What methods can be used to speed up a firm’s cash inflows?

A: Cash inflows:Cash inflow can be defined as cash or money attained by an institution, firm or company…

Q: What is the net cash flow from investing activities?

A: The net cash flow from investing activity can be defined as the part of cash flow statement which…

Q: What is free cash flow, and how is it calculated?

A: Free cash flow:Free cash flow is defined as an evaluation of financial performance of a company. It…

Knowledge Booster
Accounting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
  • Principles of Accounting Volume 1
    Accounting
    ISBN:9781947172685
    Author:OpenStax
    Publisher:OpenStax College
    Managerial Accounting: The Cornerstone of Busines...
    Accounting
    ISBN:9781337115773
    Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
    Publisher:Cengage Learning
    Cornerstones of Financial Accounting
    Accounting
    ISBN:9781337690881
    Author:Jay Rich, Jeff Jones
    Publisher:Cengage Learning
  • Corporate Fin Focused Approach
    Finance
    ISBN:9781285660516
    Author:EHRHARDT
    Publisher:Cengage
    Intermediate Accounting: Reporting And Analysis
    Accounting
    ISBN:9781337788281
    Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
    Publisher:Cengage Learning
    Financial Accounting
    Accounting
    ISBN:9781337272124
    Author:Carl Warren, James M. Reeve, Jonathan Duchac
    Publisher:Cengage Learning
  • Principles of Accounting Volume 1
    Accounting
    ISBN:9781947172685
    Author:OpenStax
    Publisher:OpenStax College
    Managerial Accounting: The Cornerstone of Busines...
    Accounting
    ISBN:9781337115773
    Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
    Publisher:Cengage Learning
    Cornerstones of Financial Accounting
    Accounting
    ISBN:9781337690881
    Author:Jay Rich, Jeff Jones
    Publisher:Cengage Learning
    Corporate Fin Focused Approach
    Finance
    ISBN:9781285660516
    Author:EHRHARDT
    Publisher:Cengage
    Intermediate Accounting: Reporting And Analysis
    Accounting
    ISBN:9781337788281
    Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
    Publisher:Cengage Learning
    Financial Accounting
    Accounting
    ISBN:9781337272124
    Author:Carl Warren, James M. Reeve, Jonathan Duchac
    Publisher:Cengage Learning