In the net present method future, cash flows are discounted to their present value a)TRUE b) FALSE

Q: Net income in cash basis is the same as the net operating cash flow for the period.   True or…

A: Net Income in cash basis means while calculating net income from income statement , only transaction…

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: Multiple Choice Are revenues. Increase income. Are liabilities. Are not allowed under GAAP. Require…

A: When a company receives money in advance of earning it, the accounting entry is a debit to the asset…

Q: An SME does not need to present a statement of cash flows. True or false

A: statement of cash flows shows the cash inflows and cash outflows to and from the organization.  It's…

Q: In general, there are several ways to address a particular sequence of cash flows in order to…

A: Cash flow is the net amount that is received and paid from operating, investing, and financing…

Q: Under IFRS, value-in-use is defined as: a.   net realizable value. b.   fair value. c.   future cash…

A: IFRS International financial reporting standards are guidance and framework provided for reporting…

Q: Identify which from the following scenarios depict relevant cash flows in making the decision…

A: While making decision for accepting two alternatives, we always consider relevant cost and relevant…

Q: Which of the following method will be adopted to disclose Cash equivalents in the balance sheet? a.…

A: Historical cost method will be adopted to disclose Cash equivalents in the balance sheet....…

Q: If you disounted a set of positive real cash flows with a nominal discount rate and inflation were…

A: Justification:Suppose the positive cash flows are discounted with the inflation rate, which is…

Q: a. Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using…

A: Cash Flow From Operating Activities: It is the amount of cash generated by the company from its…

Q: When preparing the operating section of the statement of cash flows. using the indirect method…

A: The indirect method for the preparation of the operating section of the statement of cash flows…

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: When preparing the operating section of the statement of cash flows. using the indirect method…

A: Under indirect method of statement of cash flows, change in current assets and current liabilities…

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: Norstrom's criterion uses net cash flows while Descartes' rule is based on cumulative cash flows…

A: Norstrom and Decartes are the two criteria that are used in context of cash flows.

Q: /hich of the following statements is false? O a. Assets must always equal the sum of liabilities and…

A: Assets can be classified as current assets or long term assets and represented in the balance sheet.

Q: 10

A: Cash flow refers to the total amount of cash and its equivalents that travel in and out of a company…

Q: Actual cash value is defined as Replacement cost Coinsurance amount Insurable value Depreciated…

A: Actual Cash Value (ACV) is a method of valuing insured property of business. It is not equal to…

Q: Under IFRS, value-in-use is defined as:(a) net realizable value.(b) fair value.(c) future cash fl…

A: IFRS International financial reporting standards are guidance and framework provided for reporting…

Q: True/false   Under IFRS, the discount rate should reflect risks for which future cash flow…

A: False  Refer step 2 for explanation

Q: In future value or present value problems, unless stated otherwise, cash flows are assumed to be…

A: There are two types of cash flows 1. Ordinary annuity 2. Annuity due.…

Q: How to treat interest expense when preparing a Statement of Cash flows? Interest paid is reported…

A: Operating activity under cash flow statement represent the amount of cash inflows and outflows from…

Q: Cash Flow Assumptions - defenition, uses and other informations

A: Meaning of cash flow Assumptions, This term refers to the way in which the costs are cleared from a…

Q: A formal cash management approach for determining a firm’s optimum cash balance under certainty is…

A: The Baumol cash management model aids in establishing a firm's optimal cash balance under certainty.…

Q: The statement of cash flows shows cash inflows and cash outflows for a period of time. True False

A: Statement of cash flows is a financial statement, which is prepared to identify and analyze the…

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

A: The Solely Payment of Principal and Interest test requires that the contractual terms of the…

Q: true or false The first step in preparing the statement of cash flows is to determine the change…

A: Steps Include in preparation of cash flow statement;   1St Step= Preparation of cash flow from…

Q: The statement of cash flows explains the difference between the beginning and ending balances of…

A: Introduction: The net amount of cash received and disbursed by an entity over a given period of time…

Q: Determining the future value of one or more present day cash flows is known as​ ________.   A.…

A: Future value is known as value in the future of present cash flows

Q: Positive and negative cash flows occurring at varying points in time can simply be summed to…

A: It is pertinent to note that money that is received today can generate returns in the form of…

Q: Cash flows from selling machinery would be classififed as investing activities. True False

A: Investing activities is an important section in cash flow statement which shows all cash inflows and…

Q: To determine cash payments for operating expenses for the statement of cash flows using the direct…

A: Operating expenses: These are the expenses that a business incur through its normal business  and…

Q: For any cash flow the below statement is: Pequivalent> Fequivalent Select one: O False

A: Cash flows are regular amount which gets from an investment.

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: in general, positive cash flows are moved to the end of the interest period in which they happen.…

A: Flows of cash whether inflow or outflow in the business refers as cash flows, generally these flows…

Q: ositive and negative cash flows occurring at varying points in time can simply be summed to…

A: In this calculating net present value calculation present value of cash flow is considered.

Q: Define net operating cash flows. Briefly explain why periodic net operating cash flows may not be a…

A: Definition: Net operating cash flow: The net operating cash flow refers to the total transactions…

Q: Which of the following statements regarding the statementof cash flows is false?a. The statement of…

A: Cash flow statement is a financial statement which shows cash generated or used during the period.…

Q: When Generating a Statement of Cash Flows, the direct method of preparation would result in a…

A: Cash flow statement (CFS) is a financial statement prepared by the company at the end of every year…

Q: Briefly explain the concept of discounted-cash-flow analysis. What are the two common methods of…

A:

Q: Which one of the following statements best describes a cash outflow in relation to the statement of…

A: Statement of cash flow is used to show the cash inflows and cash outflows which are further…

Q: What are some of the grounds for reporting a statement of cash flows using the indirect…

A: The Answer:

Q: period

A: Payback period is defined as the time taken to recover the cost of an investment. In other words it…

Q: In solving measurement problems involving the use of annuities, which of these four required…

A: Financial accounting: Financial accounting is the process of recording, summarizing, and reporting…

Q: Which of the following is NOT a way O Discounted Cash Flow -DCF Relative Valuation -…

A: There are many types of valuation techniques used for valuation of company and equity.

Q: Which of the following usual modification of terms least likely affects the present value of future…

A: Reduction in principal, Interest and deferral of maturity period will affect the Present value of…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.