Why are cash balances in excess of those needed to financebusiness operations viewed as relatively nonproductive assets? Suggest several ways in which these excess cash bal-ances may be utilized effectively.

Q: _______ It illustrates how operating, investing, and financing activities affect cash.

A: Operating activities: Operating activities are those business activities that are related to its day…

Q: If a company is experiencing cash flow difficulties, it may opt to sell its receivables to a third…

A: Any company can face cash crunch/ cash burn/ cash difficulties because of inefficient collection…

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: 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: indirect method of reporting cash flows from operating activities focuses on the differences between…

A: Cash flow statement is a financial statement that shows how changes in balance sheet accounts and…

Q: What information does the statement of cash flowsreport that is not reported on the other required…

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

Q: ****New ans pls   In what way is the preparation of the Operating Activities section of the Cash…

A: Cash flow statement is a statement which provides details for all cash inflows and cash outflows of…

Q: What are the primary classifications into which AF’s cash inflows and cash outflowsare separated? Is…

A:

Q: What methods can be used to delay a firm’s cash outflows?

A: Cash Outflows: It is the cash that go away from a business. Such cash can be used for paying staff…

Q: Cash surplus and economic assumptions are components of a financial planning model. True or False

A: Future is uncertain and it contains various risk factors. Financial planning (FP) model is used to…

Q: Which of the following is not an economic purpose of financial instruments?   a Allows transfer of…

A: b Permit transfer of fund that allows sharing of inherent risk associated with the cash flows coming…

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

A:

Q: Which of the following is not a basic principle of cash management? Keep inventory levels high.…

A: Cash management is the process of collection and management of cash flows in the organization. For a…

Q: esearch articles that deal with the benefits which might be derived from the Statement of Cash…

A: In accounting cash flow statement is that financial statement that shows different soucres of cash…

Q: Which of the following statements is incorrect? Cash fund that is being held specifically for the…

A: Lets understand the basics. Cash or cash equivalent is an item which are either cash or either…

Q: How much should be reported as cash inflows from operating activities?

A: Operating activity refers to the normal business activity of a company in which transaction like…

Q: Under U.S. GAAP, the statement of cash flows classifies cash expenditures for interest expense as an…

A: (U.S. GAAP) GENERALLY ACCEPTED ACCOUNTING PRINCIPLES ARE COLLECTION OF THE ACCOUNTING RULES AND…

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: 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: What are the primary benefits of reporting cash flows from operational operations in an indirect…

A: This question explains about cash flows from operational operations in an indirect manner

Q: Which one of the following assets is not considered as cash equivalent? Guaranteed investment…

A: Cash equivalents are form of liquid and current assets which can be converted into cash into short…

Q: distinguish between the direct and indirect methods of presenting cash from operating activities and…

A: Cash flow statement is a statement which shows the inflow and outflow of cash for a particular…

Q: Which of the following statements is incorrect regarding the investing activities section of the…

A: Cash flow from Investing Activities include all items of cash inflows and cash outflows that result…

Q: How do the direct and the indirect methods differ in their approach to computing the net cash…

A:

Q: All of the following are weaknesses of the payback period EXCEPT Select one: a. only an implicit…

A: Payback period is period required to recover initial investment in the project.

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: Which of the following statements correctly describes the reporting of cash? O Restricted cash funds…

A: Introduction: Cash is classified as a current asset on the balance sheet, so it is increased on the…

Q: Which of the following is an advantage of cash basis accounting vs. accrual basis accounting?   It…

A: Answer:- correct option is It provides a more accurate representation of cash generated in a…

Q: Which of the following is not considered an effective cash management strategy? Multiple Choice…

A: Cash management: It implies to a process that includes the management, collection, and effective…

Q: What is the principal advantage and the principal disadvantage of the direct method of reporting…

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

Q: What is the principal disadvantage of the direct method of reporting cash flows from operating…

A: Cash flows from operating activities is an important section of cash flow statement which shows all…

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: What are the major advantages of the indirect method of reporting cash flows from operating…

A: Cash flow statement provides details of all cash inflows and cash outflows of the organization for 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 are some of the arguments in favor of using the indirect (reconciliation) method as opposed to…

A: Statement of cash flows: The statement of cash flows is a statement which includes all transactions…

Q: Which of the following is not a source of funds for immediate liquidity purposes? a. Proceeds from…

A: Liquidity refers to the ability to obtain cash so that immediate requirements can be met. It refers…

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: Explain what is meant by noncash investing and financing activities pertaining to the statement of…

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: ____ are held for the purpose of meeting short-term cash commitments rather than for investment or…

A: There are certain item of balance sheet (Current Assets) which are highly liquid can be be converted…