The net present value (NPV) method weighs early receipts of cash much more heavily than moredistant receipts of cash.” Do you agree? Why?

Q: Relevant cash inflows and outflows in a discounted cash flow analysis are the differences in…

A: True

Q: Multiple Choice Are revenues. Increase income. Are liabilities. Are not allowed under GAAP. Require…

A: When a company receives money in advance of earning it, the accounting entry is a debit to the asset…

Q: Why is the actual timing of cash inflows and outflows is ignored?

A: Cash inflows and cash outflows is the main integral part of the business. Without investment one can’t…

Q: If the total asset is smaller than total liabilities and equity on the balance sheet, what does that…

A: If total asset is smaller than total liabilities and equity then it means there is surplus of…

Q: Identify which from the following scenarios depict relevant cash flows in making the decision…

A: While making decision for accepting two alternatives, we always consider relevant cost and relevant…

Q: Explain different methods for cash transactions, and the costs associated with each.How these costs…

A: Cash transaction is referred as the transaction, which used to involve an immediate an outflow of…

Q: How can we convert any cash flow elements in constant dollars into actual dollars?

A: The cash flow elements are the constant value that can be converted into actual value by adjusted…

Q: The total cash receipts have to be put in the final part?

A: The cash receipts means the amount of money received either through cash mode or bank.

Q: A negative cash conversion cycle (CCC) means the average payment period (APP) exceeds the operatins…

A: cash conversion cycle: how much time it takes for a company to convert its investment into cash from…

Q: How can cash discounts be used to influence sales volume and the DSO?

A: Days Sales Outstanding (DSO) is the total amount of days it takes to turn credit transactions into…

Q: What are net operating loss carryforwards and how can they provide cash savings?

A:

Q: What is cash conversion cycle and how is it different from operating cycle?

A: Cash conversion cycle: It is a way that helps a company to determine how much it requires to convert…

Q: A formal cash management approach for determining a firm’s optimum cash balance under certainty is…

A: The Baumol cash management model aids in establishing a firm's optimal cash balance under certainty.…

Q: The practice of realizing cash from accounts receivable before its maturity date is widespread.…

A: SOLUTION- Accounts Receivable (AR) is the proceeds or payment which the company will receive from…

Q: The NPV method determines how much the present value of cash inflows exceeds the present value of…

A: The amount of difference between the PV (present value) of cash inflows and cash outflows is called…

Q: If current assets other than cash increase, what is the effect on cash? What about a decrease in…

A: Statement of cash flows: It is one of the financial statement that shows the cash and cash…

Q: In preparing a balance sheet, restricted cash goes under what heading?

A: Restricted cash is the amount of cash kept aside for some restricted purposes, to ensure that…

Q: Explain why cash outflows during the period for purchasesand salaries are not specifically reported…

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

Q: Please construct a complete, original answer for the following question in no more than sever…

A: Meaning: Cash ratio: Cash Ratio is measurement of a company's liquidity, specifically the ratio of a…

Q: Which of the following is not a factor in explaining why the present value of a future dollar is…

A: Present value: This is the amount of future value reduced or discounted at a rate of interest till…

Q: Discuss the limitations of the traditional discounted cash flow (DCF) analysis

A: Discounted cash flow determines the present value of the future cash flow of the company. It is…

Q: Why are cash balances in excess of those needed to financebusiness operations viewed as relatively…

A:

Q: 3. What are some other potential cash inflowsbesides collections?

A: Cash inflow means that money goes into a company. Sales, investment, or funding may be. It's the…

Q: All of the following are weaknesses of the payback period EXCEPT Select one: a. only an implicit…

A: Payback period is period required to recover initial investment in the project.

Q: If the time interval for compounding is different from the time interval for cash transactions what…

A: Time interval plays a big role in determining the inflows and outflows of an investment ,therefore…

Q: What is the effect on cash when current liabilities increase? A. Cash increases by the same…

A: Cash flow from operating activities: The cash flow from operating activities section is the first…

Q: cash inflows are greater than cash outflows, then there is a new ( INCREASE / DECREASE) in Cash.…

A: Cashflow represents the inflows and outflows of cash. When the cash flows into the business, there…

Q: In the discounted cashflow method, the discount rate is used for the following reasons EXCEPT a. it…

A: Discounted Cashflow Method: The discounted cash flow (DCF) approach is a method of valuation that is…

Q: I woud like to know what is the formula for accumulated deficit and cash and cash equivalents (the…

A: In this question we write formula for accumulated deficit and cash and cash equivalents.

Q: Which of the following is not considered an effective cash management strategy? Multiple Choice…

A: Cash management: It implies to a process that includes the management, collection, and effective…

Q: Why are the cash flows so difficult to estimate accurately?

A: Statement of cash flows: Statement of cash flow is a financial statement that shows the cash and…

Q: there are two policies to consider when payment period is less than compounding period. These are…

A: When payment period is more than the compounding period for a single amount, there are an infinite…

Q: What is the principal disadvantage of the direct method of reporting cash flows from operating…

A: Cash flows from operating activities is an important section of cash flow statement which shows all…

Q: What does a negative Cash Flow from Assets ( CFFA) indicate?

A: Cash flows are an integral part of any business. To keep operating, businesses require positive cash…

Q: Which statement characterizes the time value of money concept?  A) The future value of a present…

A: Present value means worth of a dollar today Future value worth of a dollar in future.

Q: or the cash flow given below, nnual uniform deposit (A) that yie

A: First we need to compute the present value of these cash flows. Then, we can compute value of A…

Q: Which is higher, net earnings or operating cash flows? Which line item is the biggestreason for this…

A: Operating activities: Operating activities refer to the normal activities of a company to carry out…

Q: period

A: Payback period is defined as the time taken to recover the cost of an investment. In other words it…

Q: Cash realizable value is calculated as Accounts Receivable plus Allowance for Doubtful Accounts O…

A: Cash realizable value is the amount of cash that is receivable from the accounts receivable.

Q: Which of the following is NOT an acceptable basis on which to measure an expense? A cash outflow. O…

A: Measurement of expenses defines a projection of expenses to be incurred in a time frame or for an…

Q: Explain in detail with examples of different methods for cash transactions, and the costs associated…

A: Accounting on a cash basis: When transactions are done in cash, the cash basis of accounting is…

Q: What are the strenghts and weaknesses of the Discounted Cash Flow methods

A: Cash flow is the movement of money from a particular investment. Discounted cash flows mean…