What happens to cash if the value of other current assets rises? Is it possible that current assets, other from cash, may decrease?

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: 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: An example of a cash inflow from investing activities is:

A: The investing activities of a cash flow statement include the purchase and sale of fixed assets and…

Q: A liquid asset may O be converted into cash O be converted into cash with little chance of loss O…

A: Liquid Assets can be converted into cash easily in a short amount of time. Generally, liquid assets…

Q: A Loss on sale on assets will decrease cash flows True  False

A: Statement of Cash Flows: Statement of Cash Flow is one of the main four financial statements,…

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 factors affect the interest rate used to discount the cash flow expected from a financial asset

A: the interest rate that is used to discount the cashflow expected from a financial asset is nothing…

Q: how to manage excess cash through investing

A: Introduction Investing activity: Investing activities involves cash used for and generated by…

Q: What is free cash flow? If you were an investor, why might you be more interested in free cash flow…

A: Answer:   Free cash flows are the residual amount of cash remains with the company after the meeting…

Q: What are the two principal reasons for holding cash? Can a firm estimate its target cash balance by…

A: It refers to the level of cash that the company should maintain to determine the tradeoff between…

Q: rue or false. a decrease in cash assets is a debit?

A: Asset represents resources of the entity that are used in the process of revenue generation of…

Q: A disadvantage of using the payback period to compare investmentalternatives is that it;

A: Payback period: The payback period is the time period required to recover the initial investment of…

Q: What is cash flow from investing activities? Explain some of the activities as example  of cash…

A: Cash Flow statement is a statement which was used by the organisation to find the cash earned and…

Q: Which of the following is a source of cash flows? * O Taxes. O Cost of goods sold. O Depreciation. O…

A: Source of Cash flows in cash inflow into the organisation. Depreciation is a non cash expense.…

Q: What does it mean to have "free cash flow"? What may make free cash flow more important to an…

A: Introduction: The residual amount of cash that remains with the company after all operational…

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

A:

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

A: Liabilities: The claims creditors have over assets or resources of a company are referred to as…

Q: statements are true of long-term investments? They can be considered cash equivalents.

A: Investment: It refers to the process of using the currently held excess cash to earn profitable…

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 the operating cash flow or OCF? Explain why interest paid is not a component of operating…

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

Q: What is the difference between net cash provided by operating activities and free cash flow?

A:

Q: What is the Time Value of Money (TVM)? Specifically, how do inflation and compound  interest effect…

A: Time value of money states that a sum of money has more value today than the same sum at a future…

Q: When an asset is sold at a gain, why is the gain not reported as a cash inflow from operating…

A: Cash Flow Statement: Cash Flow Statement is a fundamental financial statement that renders valuable…

Q: Why might a business invest cash in temporary investments?

A:

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: Achieving profitability will automatically assure sufficient amounts of cash.  True or false?

A: Profitability is the ability of the company to earn a profit. Profit is an amount of revenue over…

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: Why are the cash flows so difficult to estimate accurately?

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

Q: ations a

A: The growth or decrease in the quantity of money a firm, organisation, or individual has is referred…

Q: Would the move to a JIT system have a one-time or recurring impact on operating cash flow?

A: JIT inventory system: JIT system is a method adopted by manufacturers with an objective of…

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 does a negative Cash Flow from Assets ( CFFA) indicate?

A: Cash flows are an integral part of any business. To keep operating, businesses require positive cash…

Q: Which statement characterizes the time value of money concept?  A) The future value of a present…

A: Present value means worth of a dollar today Future value worth of a dollar in future.

Q: Why does Cash often is called a nonearning asset?

A: Non-earning assets are assets that don't create returns. These may incorporate cash put resources…

Q: Speculative Balance refers to holding of cash for future investment opportunities.

A: Speculative balance is the method used by the investors of holding money for making future…

Q: What are the key factors that can lead to an under/overstatement of  the cash balance

A: Cash balance is the balance appearing in the Cash edger or Cash Books after all income and…

Q: Can the Current assets be converted into cash?

A: Assets: These are the resources owned and controlled by business and used to produce benefits for…

Q: Why is the indirect method of cash flow confusing and why is it helpful?

A: Cash Flow Statement - Under Cash Flow there are three type activities involved - 1. Operating…