What is the primary reason for a firm’s accounting income differing from its cash flows? a....
What is the primary reason for a firm’s accounting income differing from its cash flows?
a. The presence of cash items in the statement of financial position.
b. The presence of cash items in the statement of comprehensive income.
c. The presence of non-cash items in the statement of financial position.
d. The presence of non-cash items in the statement of comprehensive income.
e. The presence of non-cash items in the statement of cash flow position.
d. The presence of non-cash items in the statement of comprehensive income.
e. The presence of non-cash items in the statement of cash flow position.
Homework Answers
Option d is correct
The present of non cash items in the statement of comprehensive income results in a seperate statement of cashflows.
Add Answer to:
What is the primary reason for a firm’s accounting income
differing from its cash flows?
a....
As a complement to the balance sheet and the income statement, the statement of cash flows...
As a complement to the balance sheet and the income statement, the statement of cash flows is an informative statement for analysts for the following reasons: • Analysts who understand the types of information this statement presents and the kinds of interpretations that are appropriate find that the statement of cash flows reveals information about the economic characteristics of a firm’s industry, its strategy and the stage in its life cycle. • The statement of cash flows provides information to...
As a complement to the balance sheet and the income statement, the statement of cash flows...
As a complement to the balance sheet and the income statement, the statement of cash flows is an informative statement for analysts for all the following reasons except: a. The statement of cash flows highlights accounting accruals, which can provide insight into the overall sustainability and quality of a firm’s reported earnings. b. Analysts who understand the types of information this statement presents and the kinds of interpretations that are appropriate find that the statement of cash flows reveals information...
Target Corporation prepares its financial statements according to U.S. GAAP. Target’s financial statements and disclosure notes...
Target Corporation prepares its financial statements according to U.S. GAAP. Target’s financial statements and disclosure notes for the year ended February 3, 2018, are available here. This material is also available under the Investor Relations link at the company’s website (www.target.com). Required: 1. By what name does Target label its income statement? 2. What amounts did Target report for items llisted below for the year ended February 3, 2018. (Enter your answers in millions (i.e., 10,000,000 should be entered as...
Which financial statement is used to review a firm’s sources and uses of cash flows over...
Which financial statement is used to review a firm’s sources and uses of cash flows over the year? A . the Income Statement B . the Statement of Retained Earnings C. the Statement of Cash Flows D. the Balance Sheet
Financial Information and Cash Flows Chapter 1 AS-13L04 Which items appear in the cash flow from...
Financial Information and Cash Flows Chapter 1 AS-13L04 Which items appear in the cash flow from operating activities section of the statement of cash flows using the indirect method? AS-14 LO Which items appear in the cash flow from investing activities section of the statement of cash flows? AS-15 LO Which items appear in the cash flow from financing activities section of the statement of cash flows? AS-16 LO What does a gain on the sale of equipment indicate? AS-17...
One rationale for the statement of cash flows is to A. ensure that the cash account...
One rationale for the statement of cash flows is to A. ensure that the cash account balances at year-end. B. reconcile differences between net income and cash receipts and disbursements. C. calculate the company’s free cash flow. D. examine the cash effects of income from discontinued operations, extraordinary items and changes in accounting principles. One important difference between return on assets (ROA) and return on common shareholder’s equity (ROCE) is A. ROA does not differentiate based on how a company...
U.S. GAAP mandates accrual basis accounting for income recognition. However, the statement of cash flows is...
U.S. GAAP mandates accrual basis accounting for income recognition. However, the statement of cash flows is a mandatory financial statement as a part of a full set of financial statements. Why, if so much emphasis is placed on accrual basis accounting, must a statement of cash flows be presented? What is its purpose and how is it useful to stakeholders? Presenters of such statement may choose to present using the direct or indirect method. Discuss the similarities and differences between...
cash flows from operating activities - indirect method the net income reported Cash Flows from Operating...
cash flows from operating activities - indirect method the net
income reported
Cash Flows from Operating Activities - Indirect Method The net income reported on the income statement for the current year was $116,900. Depreciation recorded on store equipment for the year amounted to $19,300. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year Beginning of Year Cash $47,810 $43,510 34,280 32,150 48,950 Accounts receivable (net)...
What do cash flows from financing activities generally relate to? 1- A firm’s debt and equity...
What do cash flows from financing activities generally relate to? 1- A firm’s debt and equity transactions 2- A firm’s purchase and sale of long-term assets 3- A firm’s non-cash transactions 4- A firm’s sale of goods and services
Net Present Value (NPV) is involved with a. Cash flows not accounting income b. Both cash...
Net Present Value (NPV) is involved with a. Cash flows not accounting income b. Both cash flows and accounting income c. Neither cash flows nor accounting income d. Accounting income not cash flows Select one: a. Accounting income not cash flows b. Neither cash flows nor accounting income c. Both cash flows and accounting income d. Cash flows not accounting income
Financial Information and Cash Flows Chapter 1 AS-13L04 Which items appear in the cash flow from operating activities section of the statement of cash flows using the indirect method? AS-14 LO Which items appear in the cash flow from investing activities section of the statement of cash flows? AS-15 LO Which items appear in the cash flow from financing activities section of the statement of cash flows? AS-16 LO What does a gain on the sale of equipment indicate? AS-17...
cash flows from operating activities - indirect method the net
income reported
Cash Flows from Operating Activities - Indirect Method The net income reported on the income statement for the current year was $116,900. Depreciation recorded on store equipment for the year amounted to $19,300. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year Beginning of Year Cash $47,810 $43,510 34,280 32,150 48,950 Accounts receivable (net)...
Most questions answered within 3 hours.
-
find the critical value associated with a right sided hypothesis of
the mean using a sample...
asked 55 minutes ago -
Which of the following statements is true with respect to a
simple linear regression model?
a....
asked 1 hour ago -
The energy required to remove an electron from a surface of a
solid element is called...
asked 3 hours ago -
How would you train your employees to avoid risks of using
mobile devices?
asked 3 hours ago -
Assume Kw = 1.01 ✕ 10−14
For pure water, we can calculate [H3O+ ] = [OH...
asked 4 hours ago -
Suppose that on a temperature scale X, water boils at 203.0°X
and freezes at -105.7°X. What...
asked 5 hours ago -
BaS crystallizes in a cubic unit cell with S2- ions on each
corner and each face....
asked 5 hours ago -
A. 0≤P(Oi)≤10≤P(Oi)≤1 for each i
B. P(Oi)≤0P(Oi)≤0
C. P(Oi)=1+P(OCi)P(Oi)=1+P(OiC)
D. P(Oi)≥1P(Oi)≥1
If an experiment consists of...
asked 7 hours ago -
A battery has an emf of 9.20V and an internal resistance of 1.20
ohm. a)What resistance...
asked 7 hours ago -
The area of an elastic circular loop decreases at a constant
rate, dA/dt = −6.60×10−3 m2/s...
asked 8 hours ago -
The denaturation of proteins can be described by the
equilibrium
F⇌U
where F and U represent...
asked 9 hours ago -
Please answer what the maximum and minimum force is, and the
angle on the ion is...
asked 9 hours ago