a) What is the difference between Accounting Income and Cash Flow? Which do we use when making decisions? b) Here are the simplified finonoial tet

Q: What are the aims of the cash flow statement?

A: Cash flow statement is a statement which records inflow & outflow of cash from the three main…

Q: What is the purpose of cashflow statement ? What are the activities  that are  affecting the…

A: The cash flow statement is one of the financial statements of the business. It records the cash flow…

Q: What is understood by a Cash Flow Statement Is And How It Works?

A: The three financial statements are income statement, balance sheet and cash flow statement.These…

Q: Which method use net income and which use cashflow.

A: Statement of cash flows:   It is one of the financial statement that shows the cash and cash…

Q: Explain the importance of cashflow statements.

A: Cash flow statement is one of the important financial statement that is being prepared by the…

Q: Which one of the following methods is based on net profit rather than cash flows? a. net present…

A: We use capital budgeting to determine if a project is financially viable or not. We accept viable…

Q: Which approach makes use of net income and which way makes use of cashflow

A: The cash flow statement is the direct way, and the indirect way.

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 is accrual accounting and how does it work?

A: Accrual accounting is a system of accounting wherein: Revenues are recognized as and when they are…

Q: What are the differences between cash and accrual basis accounting? Provide an example of each

A: The financial statements can be prepared using various methods as accrual basis and cash basis…

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 are the sections of the cash flow statement? Why is it divided this way?

A: We look at the financial statements of a company to analyze its financial position and health.…

Q: Discuss the differences between cash basis accounting and accrual basis accounting. What are the…

A: The fundamental principle of accrual basis accounting is the matching principle, which aims to match…

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: What is the statement of cash flows, and what are some questions it answers?

A: A cash flow statement is the summary of cash flow which provides the details of the cash and cash…

Q: How to adjust net income to cashflow.

A: In cashflow there are 2 methods for calculating operating cash flow, they are: a. Direct Method b.…

Q: balance

A: Income statements are statements that helps us to know the company's profits for a particular time…

Q: What is a Cash Flow Statement?

A: A cash flow statement  is a statement which provides information about the changes in cash and cash…

Q: What is the difference between cash basis accounting and accrual basis accounting?

A: Accounting: Accounting is a system, or a process of collecting and organizing economic transactions,…

Q: What advantage do you see in compiling financial data into standardized statements like the Income…

A: Standardized statements also acknowledged as financial statements, these statements such as balance…

Q: Define Cash-basis accounting.

A: Accounting: Accounting is a system, or a process of collecting and organizing economic transactions,…

Q: Why do net income and net cash flow differ?

A: Net income vs Net cash flow:

Q: What does the cash flow statement summarize?

A: Financial Statement:   They are annual reports of an organization summarizing the financial…

Q: What is a common cash flow transaction/Give an example?

A: Cash flows are mainly of three types:  1. Operating 2. Investing and 3. Financing  Cash flows from…

Q: 1. Identify a basis that cannot be used for the measurement of the elements of financial statements.…

A: Financial statements are statements or reports that are prepared at the end of the financial…

Q: Explain Cash versus Accrual Accounting.

A: Cash basis accounting: Cash basis accounting is the method of accounting that record revenues only…

Q: What is accural vs cash basis accounting. Explain with examples?

A: Cash Accounting: A form of accounting in which receipts are reported during the period in which they…

Q: in accountin

A: The cash is an important and most liquid asset for the business. The cash flow statement is one of…