A company reported net income of $950,000. Cash from operations a. will always be less than $950,000. b. will beequal to $950,000. c. will always be more than $950,000. d. cannot be determined without more information.

Net income and cash flow from operations are two different financial metrics, although net income is…

Answered: A company reported net income of…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter2: Introduction To Financial Statements

Section: Chapter Questions

Problem 5MC: Assume a company has a $350 credit (not cash) sale. How would the transaction appear if the business...

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Assume a company has a $350 credit (not cash) sale. How would the transaction appear if the business uses accrual accounting? A. $350 would show up on the balance sheet as a sale. B. $350 would show up on the income statement as a sale. C. $350 would show up on the statement of cash flows as a cash outflow. D. The transaction would not be reported because the cash was not exchanged.
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on Which of the following is NOT a true statement about the statement of cash flows? O a. It shows how the profits or losses of the company were generated. O b. It reports why cash increased or decreased. O c. It covers a specific span of time the same as the income statement. O d. It shows where cash came from and how it was spent. Finish attempt...
d. $125,300 x 28%=160,384 e. $217,178 x28%=277,987.84 3. Paying cash for supplies would: a. increase total assets and increase owners' equity b. increase assets and decrease liabilities C. decrease total assets and decrease liabilities d. increase net income and increase assets e. have no effect on total assets or owners' equity
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10 Suppose your company sells services of $310 in exchange for $175 cash and $135 on account. Required: 1. Prepare the journal entry to record this transaction. 2. Identify the amount that should be reported as net cash flow from operating activities. 3. Identify the amount that would be included in net income. 4. Show how the indirect method would convert net income (requirement 3) to net cash flow from operating activities (requirement 2). Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Prepare the journal entry to record this transaction. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Record the service revenue of $175 for cash and $135 on account. Note Enter debits before credits Transaction General Journal Debit Credit
Super Corp. has an acid test ratio 1.5 to 1.0 which of the following will causethis ratio to deteriorate?a. Payment of cash dividends previously declared.b. Borrowing short term loan from a bank.c. Sale on inventory on account.fd. Sale of equipment at a loss.

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A company reported net income of $950,000. Cash from operations a. will always be less than $950,000. b. will be equal to $950,000. c. will always be more than $950,000. d. cannot be determined without more information.