Trur or False? The Cash flow received from the firm's assets  must equal the cash flows to the firm's creditors and stockholders?

Q: Which of the following statements is incorrect?      A. Dividend payments can be influenced by cash…

A: Dividends are the amount of profits distributed to the shareholders of the company.

Q: What are the two financial statements that are critical for understanding the company’s ability to…

A: Financial Statement:   It refers to the end reports prepared by the organization at the end of the…

Q: A firm’s earnings are a true representation of cash flows available to the stockholders. A) True B)…

A: Earnings of the business means how much net income has been earned by the business. Stockholders are…

Q: fers to the firm’s decision on what to do with its

A: Step 1   Companies use profit management to adjust profit volatility and present a fixed profit…

Q: What is the importance of a pro forma income statement to a firm?

A: Pro forma is referred as the sake of form. It is used to represent the information in a formal…

Q: hat is the overall objective of financial manage Maximize cash flow O Increase earnings O Maximize…

A: The financial management has very important roles to play in the modern corporate organisations and…

Q: ree cash flow to the firm is the total cash flow to all investors of the firm. O True

A: Free cash flow is cash flow available in the company after doing payment for all necessary expenses…

Q: for the cash flow to shareholders wouldnt the addition to retain earning be included?

A: Cash flow is the movement of cash. It can be inflow or outflow. Where cash comes comes, it is called…

Q: Net income or loss generally arises from transactions with owners who provide net capital to the…

A: Net income is what the business has left over revenue after all expenses, including salary and…

Q: Which of the following is true of retained earnings? Retained Earnings is decreased by net income.…

A: Retained earnings are the profits that are attributable to equity shareholders accumulated over a…

Q: How does the statement of cash flows aid analysts in the evaluation of a company's financial…

A: The statement of cash flows is a financial statement that provides information about the cash…

Q: True or False? cash flows to and from creditors and owners include changes in equity and debt

A: Cash flow from creditors increases the debt and cash flow to creditors decreases the debt while cash…

Q: Which is an example of a cash flow from an operating activity? Payment of cash dividends to the…

A: Cash flow statement is a statement which is prepared to find out the cash comes in and goes out , by…

Q: Describe the three components of cash flow from assets.

A: 1. Cash flow from asset represents the net cash flow associated with the asset of the business of…

Q: Explain or illustrate about Statement of Cash Flows and Financial Analysis why it is important in…

A: The statement of cash flows is a financial statement that provides a summary of how the cash and…

Q: The amount of cash a company paid in dividend can be found in the balance sheet. True O False

A: When a company declares dividend , dividend payable account is credited and retained earnings is…

Q: rm maintains a positive cash balance, why is it essential to review the

A: Introduction : The net balance of cash going into as well as outside of a firm at a certain moment…

Q: Is it impossible for a company to report positive net income on the income statement but have…

A: Cash flow from the operating activities refers to the inflow and outflow of the cash in the business…

Q: In the long run, is it more important for a business to havepositive cash flows from its operating…

A: Statement of cash flows: This statement reports all the cash transactions which are responsible for…

Q: Is it possible for a company to have significant net income in the same time period that net cash…

A: Yes! It is possible because net income is based on accrual concept i.e. income is recognized as and…

Q: If an investor is interested in the solvency of a company, what should they analyze? (A) Balance…

A: Financial statements are those statements which are prepared at the end of accounting period for…

Q: a) Define both Financing Cash Flows and Investing Cash Flows.  b) For Financing Cash Flows, explain…

A: Cash flow from financing activities (CFF) is a section of a company’s cash flow statement, which…

Q: How can changes in working capital affect a company's cash flows, and how can this be managed…

A: Working capital is a financial metric that represents the amount of money a company has available to…

Q: Explain the cash flow in the company, from investors (creditors and shareholders) to back to them…

A: Cash flow refers to the inflows and outflows of cash within a company. Cash flow can come from…

Q: When would a company be able to declare a cash dividend?

A: Dividend means the amount given to shareholder of the company as profit distribution by company.

Q: How does the declaration of a cash dividend affect a company’s assets, liabilities, and equity?a. It…

A: Assets: These are the resources owned and controlled by business and used to produce benefits for…

Q: How does the accrual basis of accounting provide different results when compared with the cash…

A: Cash Basis of accounting- Under cash basis, accounting entries are recorded as and when there are…

Q: e. What is the amount of accounts payable and accruals on its balance sheet? (Hint: Consider this as…

A: Formulas:Net working capital = Current assets - current liabilitiesGiven:The firm has accounts…

Q: Which

A:

Q: State whether the following statements are true or false. 4) Agency Problem creates when managers…

A: 4. Agency problem arises when managers act against the shareholders will. Answer: Flase

Q: what factors determine the need cash in the firm's operations?

A: The following are the factors: 1. Purchase and Sale Terms 2. Receivables Collection Period 3. The…

Q: What would cause or Why would "restructuring charges" be added back into earnings in a Statement of…

A: In a cash flow statement, in the indirect method of cash flow statement, Net income is taken as…

Q: 7.- The accounting profit of a company always represents available cash flows. true or false?…

A: It is pertinent to note that under the accrual basis of accounting transactions are recorded in…

Q: Does a statement of cash flows or an income statement best mea-sure the profitability of a…

A: Statement of cash flows: Statement of cash flows reports all the cash transactions which are…

Q: as long aa a firm maintain a positive cash balance why is it essential to review the firms cash…

A: One of the essential elements in order to conduct business operations successfully is cash. Excess…

Q: TRUE OR FALSE   The balance sheet indicates the critical nature of the cash flow to the operation…

A: STATEMENT OF CASH FLOW INDICATES THE CRITICAL NATURE OF CASH FLOW TO THE OPERATION OF THE FIRM .