How are cash flows different from revenues and expenses?
How are cash flows different from revenues and expenses?
Homework Answers
Revenues and expenses refer to accounting incomes and expenses. These are recorded in the income statement as per the accounting standards. They are recorded on accrual basis. Hence the incomes are recorded as and when earned irrespective of whether cash against them is actually received. Similarly expenses are recorded as and when incurred irrespective of whether cash has been spent. Also expenses include noncash expenses such as depreciation. Hence cash flows refer to actual cash inflows and outflows and this differs from revenues and expenses.
24. Which of the following is not accurate in depicting cash flows from operations? A. (revenues...
24. Which of the following is not accurate in depicting cash flows from operations? A. (revenues expenses)(1 - tax rate) (depreciation x tax rate) B. (revenues -expenses taxes paid) C. (net profit depreciation) D. (revenues cash expenses - taxes paid)
The statement of cash flows reports: A. Assets, liabilities, and equity. B. Revenues, gains, expenses, and...
The statement of cash flows reports: A. Assets, liabilities, and equity. B. Revenues, gains, expenses, and losses. C. Cash inflows and cash outflows for an accounting period. D. Equity, net income, and dividends. E. Changes in equity.
Consider an alternative with the following cash flows. Capital Investment Revenues Annual Expenses Market Value Useful...
Consider an alternative with the following cash flows. Capital Investment Revenues Annual Expenses Market Value Useful Life MARR = € $45,000 $5000 at the end of the first year increasing by $2000 per year for the next 9 years $2000 $4500 10 years 10% Using ERR, is this a good alternative or a bad alternative? How do you know?
The excess of the cash flowing in from revenues over the cash flowing out for expenses...
The excess of the cash flowing in from revenues over the cash flowing out for expenses is termed net discounted cash flow. True/False?
The excess of the cash flowing in from revenues over the cash flowing out for expenses...
The excess of the cash flowing in from revenues over the cash flowing out for expenses is termed net discounted cash flow. A) True B) False
The statement of cash flows reports: Multiple Choice points (3 02:19:16 Ο Revenues, gains, expenses, and...
The statement of cash flows reports: Multiple Choice points (3 02:19:16 Ο Revenues, gains, expenses, and losses. Ο Assets, liabilities, and equity. Ο Equity, net income, and dividends. Ο Cash inflows and cash outflows for an accounting period. Ο Changes in equity.
How are revenues and expenses reported on the income statement under (a) the cash basis of...
How are revenues and expenses reported on the income statement under (a) the cash basis of accounting and (b) the accrual basis of accounting? Answer this question with a minimum posting of 150 words that is complete, thoughtful, and written in Standard English.
Has anyone noticed that Cash shows up in the Asset section and Revenues and Expenses show...
Has anyone noticed that Cash shows up in the Asset section and Revenues and Expenses show up in the Equity section? Why is that? Isn’t Revenue and Expense the same as cash coming in and cash going out? What causes Cash to have a different dollar amount from Revenue and Expense?
Cash receipts versus revenues During the month of April, Riley Co. had cash receipts from customers...
Cash receipts versus revenues During the month of April, Riley Co. had cash receipts from customers of $780,000. Expenses totaled $624,000, and accrual basis net income was $218,000. There were no gains or losses during the month. Required: a. Calculate the revenues for Riley Co. for April. b. Explain why cash receipts from customers can be different from revenues.
not sure how to do this Champagne, Inc., had revenues of $12 million, cash operating expenses...
not sure how to do this
Champagne, Inc., had revenues of $12 million, cash operating expenses of $8 million, and depreciation and amortization of $1.5 million during 2008. The firm purchased $700,000 of equipment during the year while increasing its inventory by $500,000 (with no corresponding increase in current liabilities). The marginal tax rate for Champagne is 30 percent. Free cash flow: What is Champagne's cash flow from operations for 2008? $3,250,000 $4,000,000 $2,500,000 $2,050,000
24. Which of the following is not accurate in depicting cash flows from operations? A. (revenues expenses)(1 - tax rate) (depreciation x tax rate) B. (revenues -expenses taxes paid) C. (net profit depreciation) D. (revenues cash expenses - taxes paid)
The statement of cash flows reports: A. Assets, liabilities, and equity. B. Revenues, gains, expenses, and losses. C. Cash inflows and cash outflows for an accounting period. D. Equity, net income, and dividends. E. Changes in equity.
Consider an alternative with the following cash flows. Capital Investment Revenues Annual Expenses Market Value Useful Life MARR = € $45,000 $5000 at the end of the first year increasing by $2000 per year for the next 9 years $2000 $4500 10 years 10% Using ERR, is this a good alternative or a bad alternative? How do you know?
The statement of cash flows reports: Multiple Choice points (3 02:19:16 Ο Revenues, gains, expenses, and losses. Ο Assets, liabilities, and equity. Ο Equity, net income, and dividends. Ο Cash inflows and cash outflows for an accounting period. Ο Changes in equity.
not sure how to do this
Champagne, Inc., had revenues of $12 million, cash operating expenses of $8 million, and depreciation and amortization of $1.5 million during 2008. The firm purchased $700,000 of equipment during the year while increasing its inventory by $500,000 (with no corresponding increase in current liabilities). The marginal tax rate for Champagne is 30 percent. Free cash flow: What is Champagne's cash flow from operations for 2008? $3,250,000 $4,000,000 $2,500,000 $2,050,000
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