Define each of the following terms:f. Accounting profit; net cash flow; NOPAT; free cash flow; return oninvested capital

Q: Net income in cash basis is the same as the net operating cash flow for the period.   True or…

A: Net Income in cash basis means while calculating net income from income statement , only transaction…

Q: What item flows from the statement of retained earnings to the balance sheet?a. Cashb. Dividendsc.…

A: Financial Statement:   A financial statement is the complete record of financial transactions that…

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: Under IFRS, value-in-use is defined as: a.   net realizable value. b.   fair value. c.   future cash…

A: IFRS International financial reporting standards are guidance and framework provided for reporting…

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: j. Rate of Return on invested capital k. Cash flow from Operations to Total Liabilities I. Ratio of…

A: The accounting ratios tells about the performance of the business in different…

Q: Operating expenses are on the cash flow statement. T/F ???

A: Cash flow Statement: It is the statement of financial analysis which records the flow of cash coming…

Q: Match each type of cash flow to its definition. Types of Cash Flows  Definitions 1. Operating…

A: The CFS (Cash Flow Statements) provides an overview of how cash is flowing within an organization.…

Q: What is the difference between accounting income and cash flow?

A: Basis of accounting: It can be defined as the methodology that is used by the business to record the…

Q: Profit is A) assets minus liabilities B) the excess of revenues over expenses C) the excess of…

A: Accounting equation is the equation that shows relationship between assets, liabilities and owner's…

Q: The flow of money or its equivalent produced by an asset dividends and interest a. investment b.…

A: An investment is defined as an asset or invested, which used in building the wealth as well as…

Q: If the flow that represents the resources generated by the company regardless of how it is financed…

A: The flow of operation captures the cash generated or consumed by the company's core business…

Q: iv) v) vi) Calculate the cash flow from assets Calculate net capital spending Calculate change in…

A: Cash flow from assets is the total cash flow to creditors and cash flow to stockholders, consisting…

Q: Explain the difference between: a) Cash Flows versus Accounting Estimates b) Static Payback Period…

A: When a company prepares financial statements or budgets it has to estimate various amounts. The…

Q: balance sheet, cash flow, and income statement interrelationships

A: This question deals with the Interrelationships between the balance sheet, cash flow statement, and…

Q: Define the net operating cash flow.

A: Net operating cash flow is the the cash generated by a company through its operating activities…

Q: The factor payment for the use of financial capital (loans and equity investments) is called...…

A: The cost of finance: Equity and debt are two sources of capital for any business.  Investors who…

Q: The​ ________ is a measure of a​ company's ability to pay its current liabilities from cash and cash…

A: Cash conversion cycle is a working capital metric which expresses how many days it takes a company…

Q: The income statement includes Group of answer choices -expenditures, net worth, surplus or deficit.…

A: Income statement is one of the financial statements that helps in depicting the profitability of an…

Q: How is Cash Flow Ratio computed? a) Net Profits + Noncash Expenses / Total Liabilities b) Net…

A: Cash flow ratio As per formula          Cash flow ratio = Operating cash flows/Current liabilities…

Q: The gain or loss on the net monetary position in a hyperinflationary economy shall be included in:…

A: This question is answered according to IAS 29 "Financial Reporting in Hyperinflationary Economies"

Q: What is Cash Flow Ratio? a) Cash and Cash Equivalents / Total Sources b) Net Profits + Noncash…

A: Cash flow statement :- Cashflow statement is one of the main financial statement that tells inflow…

Q: Give two difference between net profit and cash from operations.

A: Difference between net income and cash from operations:Net income is the profit generated by the…

Q: Define Net cash flows from financing activities.

A: Net cash flow from financing activities is the difference between Cash inflows from the financing…

Q: ash Flow from Operations vs Net Income

A: Cash flow from operating operations is a need for making an income claim. The cash flow statement is…

Q: Under the cash basis of accounting, revenue is recorded A. when realized. B. when earned. C.…

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Q: The return on assets ratio is a: OLiquidity ratio. O Solvency ratio. O Profitability ratio.

A: · Ratio analysis used to identify the business performance of the company.· It is used to measure…

Q: at is the line item that appears on a statement of financial positi- Cost of sales. Dividends paid.…

A: The line item that appears on the statement of financial position is,   Option C   Current portion…

Q: Which of the following should NOT be taken into account in calculating free cash flow? Select one:…

A: Free Cash Flow = Net income + Depreciation – Change in Working Capital – Capital Expenditure

Q: Define the differences between the following and their respective usages.   a) Statement of Income…

A: A Statement of Income, also known as an Income Statement or Profit and Loss Statement, is a…

Q: Net profit is: O Not affect Deducted the capital O Add to Capital O Equal the capital O O O

A: Net Profit is the profit for the company, which is earned by the owner and therefore it is added…

Q: Net income equals: Select one: a. Assets minus liabilities. b. Cash receipts minus cash payments.…

A: There is a multistep income statement model to record the revenue and expenses. As per this…

Q: Briefly explain the following; (i) Time value of money (ii)        Investment decision (iii)…

A: Finance is considered as the life blood of an organisation. It is necessary to manage finance in…

Q: The value of anything can be determined if you know the amount and timing of related:   Net…

A: Cashflow helps to calculate Income statement. From income statement,  we can calculate Earnings…

Q: iv) Calculate the cash flow from assets  v) Calculate net capital spending  vi) Calculate change in…

A:

Q: Classify the following cash flows as either operating (O), investing (I), or financing (F)…

A: Cash flow from operating activities calculates the inflow and outflow of cash from day-to-day…

Q: Is net operational cash flow a better indicator of performance than accrual-based net income in most…

A: Earned income is reported on a company's income statement using the accrual accounting technique…

Q: Question 6:- What is the difference between preparing the Operating section of the cash flow…

A:

Q: Which of the following formulas will correctly calculate Net Working​ Capital?   A. Current…

A: The objective of the question is to identify the correct formula for calculating Net Working Capital…

Q: Which of the following items are included in calculating Firm Free Cash Flow? I. Cost of goods sold…

A: Cash flows refer to the payments that are made in or out of the business, it takes into account the…

Q: Income statement includes: Assets and liabilities Revenue, expenses, gains and losses Cash inflows…

A: Financial statements are prepared to give an idea to the users about the final profitability and…