Why, in most cases, accrual-basis net income provides a better measure of perfomance than net operating cash flow?

Q: Where are gains and losses related to cash flow hedgesinvolving anticipated transactions reported?

A: Derivatives: Derivative is a product whose value is derived from underlying assets called base.…

Q: When opposed to cash-basis accounting, does accrual-basis accounting offer more meaningful…

A: Under cash basis accounting, transactions are recorded when the cash is actually paid or received.…

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: 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: What are the main differences in the way accounting and finance view cash flows

A: Answer: Accounting and Finance are similar in some lines. Accounting is the measurement of financial…

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 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: How can we determine the Cash Flow Statement with only Operating and Investing Activities?

A: Cash flow statements are the statements that determine the inflow and outflow of cash from three…

Q: Define each of the following terms:f. Accounting profit; net cash flow; NOPAT; free cash flow;…

A: Accounting profit is the net profit of a firm after deducting a company’s revenue from its expenses.…

Q: ow are accrual accounting earnings used in valuation and why are current earnings considered more…

A: The cash flows are important for an entity because a lack of liquidity hinders business…

Q: When calculating free cash flow using balance sheet and income statement why do we add back…

A: Free cash flow to the firm (FCF) is the cash available to all the providers of the capital, whether…

Q: Under the principle of cashflow estimation, why it is important that cashflow should be measured on…

A: A cash flow statement determines the net cash inflows and outflows from an organization during a…

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: Which of the following is the correct definition for present value (PV)?

A: Present value is an important concept in finance which is based on the concept of time value of…

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: 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: how can the gain on the sale of invesment be a deduction from net income in determining the cash…

A: Statement of cash flows: Cash flow statement is also known as statement of cash flows. It is a…

Q: What is the impact of working capital on the cash flow statement?

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

Q: In such case, net income is used, whereas cashflow is used

A: Cash flow statement: It is a financial statement that illustrates a company's cash and cash…

Q: what are the differences between the income statement and statement of cash flows and can you show a…

A: The financial statements of a company are prepared to measure the financial performance of the…

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: How can we determine the net income from operations and then adjust the net income?

A:

Q: n computing for the comprehensive income, the revaluation surplus will be deducted from the net inco

A: Solution Concept Revaluation surplus The term revaluation surplus means when the fair value of the…

Q: Distinguish between cash-basis net income and accrual-basis net income.

A:

Q: 1. What does it mean the net cash flow from financing activity? Whys it is important? 2. What are…

A: Let us define these accounting terms first and then provide some examples to help you understand the…

Q: rual profit

A: Difference between Cash and Accrual Profit The cash basis and accrual basis of accounting are two…

Q: deficit

A: If the total asset is smaller than total liabilities and equity on the balance sheet it means a…

Q: Explain the Sharing of Cash Flow from Sale?

A: Operating cash flows (OCF) is a calculation of the cash generated from the ordinary operations of…

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: How can we estimate the profits (more precisely, the cash nows) that the assets will generate during…

A: It is a process of acquiring an approximation or projection or forecast of a firm’s future budgetary…

Q: An example of an operating budget schedule is the: cash budget budgeted balance sheet O capital…

A: examples of operating budgets - Purchase budget Sales budget cost of goods sold budget etc.   time…

Q: 4.Financial Viability ( in terms of Surplus in Cash flow Statement )

A: One of the most important financial statement which is prepared and continuously monitored by the…

Q: Which of the following calculations of net income is correct?   Select one: Cash receipts…

A: The objective of the question is to identify the correct formula for calculating net income in…

Q: cash generated from operations usually larger than net profit

A: Cash generated from operations is the amount of cash received in respect of operating activities.

Q: Why are income statements and cash flow statements both valuable to investors? Analyze the income…

A: This question explains about operational operations, investment activities, and financing activities…

Q: s there any significance that can be attributed to whether net cash flows are generated from…

A: These are shown separately in the cash flow statement of one business.

Q: When it comes to financial reporting, why are investors drawn to the income statement and cash flow…

A: This question explains about the income statement vs the cash flow statement include.

Q: Accruals occur when the cash flow precedes either revenue or expense recognition. True/False?

A: Under accrual basis of accounting revenue and expense are recorded in the financial statement when…

Q: ow do I find net cash flows from operating activities?

A: Cash flows from operating activities: It is a section of Statement of cash flow that explains the…