What is the relationship between net income and operating cash flow?

Q: What is the operating cash flow

A: Operating cash flow is also known as cash flow from operations or Cash flow from operating…

Q: Contrast the direct and indirect methods of calculating net cash flow from operating activities.

A: A Cash flow statement is a financial statement that provides the summarised information regarding…

Q: Differentiate between net cash flow and accounting profit

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

Q: What are the major sources of cash (inflows) in a statement of cash flows? What are the major uses…

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Q: What is the alternative way of preparing the Cash Flow Statement?

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

Q: What is the purpose of the statement of cash flows? What information does it provide?

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

A: Present Value: It represents the present value of the future cash flow stream.  It is computed by…

Q: what are the elements included in a statement of cash flow?

A: A statement of cash flow is a financial statement of an enterprise that shows the inflows and…

Q: What does the cash ratio help determine, and how is it calculated?

A: Cash ratio is a liquidity ratio that compares the assets of the company with its current…

Q: Define cash-basis net income.

A: Cash basis of accounting: Cash basis of accounting refers to the recognition of financial…

Q: what are the major advantages of the indirect method of reporting cash flow from operating…

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Q: How can we determine the net cash flow from operations?

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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: Define Net cash flows from financing activities.

A: Net cash flow from financing activities is the difference between Cash inflows from the financing…

Q: What is Calculation of Net Cash Flow?  Please provide example.

A: Net Cash Flow: It is the total amount of money created or lost over a particular timeframe, normally…

Q: What is the net cash used in financing activities?

A: Net cash used in financing activities is the cash inflow pertaining to financing activities minus…

Q: What is the net cash provided by investing activities?

A: Introduction Cash flow statement: Cash flow statement is the financial statement which reports cash…

Q: Distinguish between the cash flow and Net Income?

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

Q: What types of questions does the statement of cash flows answer?

A: Statement of Cash flow tells us about the cash transactions of a firm for a given time period. It…

Q: How can we separate cash flows from operating cash flow?

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Q: What does the statement of cash flows report?

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

Q: What is the purpose of cash flow analysis?

A: Cash flow Statement: It is prepared by the companies. It is a tool in the hands of users of…

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

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Q: Where is cash received shown in the statement of cash flows?

A: Cash Flow Statement refers to the account statement that outlines amount of cash and cash…

Q: what will be Net Cash Generated from Operating Activity

A: Cash flows from operating activities is an important element of cash flows statement, which shows…

Q: Define Cash Flows from Operating Activities.

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

Q: What are some examples of cash flow from operating activities?

A: Cash Flow Statement is a financial statement that summarizes the inflows and outflows of cash in the…

Q: What is meant by ‘Cash Flows’ ?

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

Q: What is the difference between the net aggregate cash inflow and the net aggregate incomes?

A: The net cash flow of an association speaks to the entirety over some undefined time frame of the…

Q: A statement of cash flows has:

A: Cashflow statement represents the total cash inflow and outflow in the organization. It is key…

Q: Distinguish between operating cash flow and net income.

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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 does the statement of the cash flow report?

A: Statement of cash flow is one of the type of financial statements generally prepared by a company.

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 do we measure and compare various cash flows?

A: Cash flows are described as those movements of cash which result from the various activities of the…

Q: Explain the Cash Flow Statement with Financing Activities?

A: Cash flow from financial activities is one of the important part of cash flow statement. It…

Q: What are the benefits to preparing cash flow statement?

A: Benefits of preparing cash flow statement 1. Determination of changes in cash and cash equivalents…

Q: How much is the net cash flow from operating activities using indirect method?

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Q: Why, in most cases, accrual-basis net income provides a better measure of perfomance than net…

A: Under the accrual method of accounting, income is recorded on the income statement when it is…

Q: How is the information reported on the statement of cash flows used for decision-making purposes?

A: A Cash Flow Statement is a part of the Financial Statement of a company. It literally means a…

Q: what is the principal disavantage of the direct method of reporting cash flow from operating…

A: Direct method: This method uses only cash basis for preparing the cash flows statement. In this…

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…

Q: Cash-basis accounting produces a measure called net operating cash flow. Describe about the measure.

A: Cash basis accounting: According to cash basis of accounting, revenue should be recognized at the…