1. 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: ‘The measurement of cash flow is straightforward and objective. Profit on the other hand is complex…

A: The assertion catches both the current working outcomes and the going with changes yet to be…

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 is the difference between the sources (in nows) and uses (out nows) of cash?

A: The question is based on the concept of cash flow statement and cash flow analysis for a particular…

Q: how can the gain on the sale of invesment be a deduction from net income in determining the cash…

A: Statement of cash flows: Cash flow statement is also known as statement of cash flows. It is a…

Q: in the management of working capital, what objectives must be achieved? 2. what apposing goals must…

A: As you have asked multiple questions, we will solve the first question as per policy of Bartleby.…

Q: fers from Free Cash Flows (FCF) and discuss the types of businesses for which this differences will…

A: Difference between EBITDA and free cash flow : Analysts utilise a variety of measures to assess a…

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

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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: Preparation of the statement of cash flows does not involve: Multiple Choice O O O O O Computing the…

A: Cash flow statement is prepared to compute the net change in cash from the prior period. Statement…

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: 1. What does it mean the net cash flow from financing activity? Whys it is important? 2. What are…

A: Let us define these accounting terms first and then provide some examples to help you understand 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: How can we Share Cash Flow from Operations?

A: Cash Flow from Operations is the cash flows from principal revenue generating activities of an…

Q: Explain the Sharing of Cash Flow from Sale?

A: Operating cash flows (OCF) is a calculation of the cash generated from the ordinary operations of…

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 difference between net cash provided by operating activities and free cash flow?

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Q: . which cash flow method presentation is easier to understand: direct or indirect? b. explain the…

A: This question require us to answer which method is easy for presentation and explanation of three…

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

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Q: cash generated from operations usually larger than net profit

A: Cash generated from operations is the amount of cash received in respect of operating activities.

Q: Which of the following would be subtracted from net income when using the indirect method to derive…

A: The cash flow from operating activities can be computed either directly or indirectly.  The indirect…

Q: What are the disadvantages of only accounting for cash income and expenses in basic cost and return…

A: Cost and return analysis is also regarded as cost-benefit analysis which is carried out to make…

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: Is cash flow more reliable than accounting profit? Which one is more useful?

A: Cash Flow Cash flow system records the cash inflow and cash outflow to determine company's…

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 are the differences between cash from operating activities, cash from investing activities, and…

A: Cash from operating activities, cash from investing activities, and cash from financing activities…