Why might the revenue and cost figures shown on a standard income statement not be representative of the actual cash inflows and outflows that occurred during a period?
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Why might the revenue and cost figures shown on a standard income statement not be representative of the actual
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- In computing the periods net operating cash flows, why are noncash expenses added back to net income?What are the differences between cash flows from operating activities and the elements of an income statement?Of the following questions, which one would not be answered by thestatement of cash flows? A. Where did the cash come from during the period? B. What was the cash used for during the period? C. Were all the cash expenditures of benefit to the company during the period? D. What was the change in the cash balance during the period?
- Accrual income attempts to measure the resource inflows and outflows generated by operations during the reporting period, which may not correspond to cash inflows and outflows. What does this mean that information about cash flows from operating activities is not useful?The difference between the sources (in nows) and uses (out nows) of cash represents the net cash flow during the reporting period. True or false? How is this information very important?Explain why cash outflows during the period for purchasesand salaries are not specifically reported on a statement ofcash flows prepared using the indirect method.
- Identify, at least, three reasons that make the profit for the reporting period not equal to the net cash inflow?When deducing cash flow numbers, which of the following refers to a reflection of value? Select an answer: accounts receivable wage expenses accounts payable income statementWhat is the difference between accounting income and cash flow?
- How does a decrease in income taxes receivables on the balance sheet, impact cash flow? What is the journal entry to reflect this?Which of the following is not part of the elements of Cash flow statements? Net change in cash and bank balances or Activity Based Costing or Net Cash flow from operating activities or Cash from investing activities.What is the difference between the net aggregate cash inflow and the net aggregate incomes?
