What is the principal disadvantage of the direct method of reporting cash flows from operating activities?

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: Under the Indirect Method what must be disclosed on a Statement of Cash Flows?

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

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: 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: What are the main differences in the way accounting and finance view cash flows

A: Answer: Accounting and Finance are similar in some lines. Accounting is the measurement of financial…

Q: How do noncontrolling interest balances affect the consolidated statement of cash flows?

A:

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

A:

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 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: What are the different risks associated in the accounting of cash

A: The element of risk arises in each and every area and how well we can minimise or reduce the risk is…

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: How is a Statement of Cash Flows audited?

A: Statement of cash flows is a statement that provides overview of all cash inflows and cash outflows…

Q: How does the existence of a noncontrolling interest affect the preparation of a consolidated…

A: Non-controlling interest is that portion of the shares (ownership) that is not owned by the…

Q: Why are cash balances in excess of those needed to financebusiness operations viewed as relatively…

A:

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

A:

Q: s there any significance that can be attributed to whether net cash flows are generated from…

A: These are shown separately in the cash flow statement of one business.

Q: What kind of operations are listed on the cash flow statement? Is it important the order these…

A: A cash flow statement is a basic financial report that depicts a company's cash inflows (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: 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: An important distinction between the direct method and the indirect method of preparing a statement…

A: Introduction:- The income statement is recast on a cash basis rather than an accrual one from the…

Q: ations a

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

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 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: 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: 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 statements about the direct and indirect methods for presenting Cash Flow…

A: Cash flow statement is a financial statement that records the inflow and outflow of cash from the…

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: Accrual income attempts to measure the resource inflows and outflows generated by operations during…

A: Accounting:   Accounting is the process of recording the financial transaction of the organization…

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

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: 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…

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.