Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN: 9781337115773
Author: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher: Cengage Learning
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In which of the approaches of calculating operating cash flows do we start with the net income and add back any non-cash deductions such as
Multiple choice question.
Bottom-up approach
Tax-shield approach
Average accounting return approach
Top-down approach
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- In which of the approaches of calculating operating cash flows do we start with the net income and add back any non-cash deductions such as depreciation? Multiple choice question. Bottom-up approach Top-down approach Tax-shield approach Average accounting return approacharrow_forwardGive a specimen of cash flow statement of indirect method using imaginary figures?arrow_forwardDescribe similarities between the indirect and the direct method of te statement of cash flow. What is the same? What are the differences? If you have to choose between the two, which will you choose and why. For example:arrow_forward
- what are the operational aspects of the discounted cash flow (DCF) method?arrow_forwarddirect solution of cash flow statementarrow_forwardresearch articles that deal with the benefits which might be derived from the Statement of Cash Flows. How might it be manipulated (although it is far more difficult to manipulate than the income statement or the balance sheet)? What are the differences between the Direct Method and the Indirect Method for preparing the Statement of Cash Flows? Which method is preferential and which is most common?arrow_forward
- FAR- Conceptual Framework Kindly help me answer the following : 1. Which of the following should be considered a current value measure? * a. Replacement cost and discounted cash flow b. Replacement cost and exit value c. Replacement cost, exit value and discounted cash flow d. Exit value and discounted cash flow 2. Obligations to transfer an economic resource include all, except * a. Obligation to provide services b. Obligation to pay cash c. Obligation to transfer an economic resource even if a specified future event does not occur d. Obligation to deliver goods 3. Which is not a purpose of the Conceptual Framework? * a. To assist accountants in selecting among alternative accounting and reporting methods. b. To provide definitions of key terms and concepts. c. To assist IASB in the standard-setting process. d. To provide specific guidelines for resolving situations not…arrow_forwardWhich of the following are considered as relevant cash flows from side effects? More than one answer may be correct. Multiple select question. Cash flows from sunk costs. Cash flows from beneficial spillover effects. Cash flows from financing costs. Cash flows from erosion effects.arrow_forwardWhich of the following statements about the statement of cash flows is correct? Question 277 options: The direct method is more consistent with the primary purpose of the statement of cash flows. The indirect method starts with income from continuing operations. The direct method is known as the reconciliation method. All of these answers are correct.arrow_forward
- Which of the following phrases best describes the term " actual cash value"? a. market value b. appraised value c. replacement cost less depreciation d. original cost less depreciationarrow_forwardDescribe the direct method and indirect method of preparing the cash flow statement, and discuss the advantages and disadvantages of each approach.arrow_forwardWhat are: the payback method, the Accounting Rate of Return, and Discounted Cash Flow Model (Net Present Value and Internal Rate of Return)arrow_forward
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