Explain why the indirect method of preparing cash flows from operating activities is also known as the
Question:
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 88% (9 reviews)
The indirect method uses accrual based operating income as a starting ...View the full answer
Answered By
Muhammad Umair
I have done job as Embedded System Engineer for just four months but after it i have decided to open my own lab and to work on projects that i can launch my own product in market. I work on different softwares like Proteus, Mikroc to program Embedded Systems. My basic work is on Embedded Systems. I have skills in Autocad, Proteus, C++, C programming and i love to share these skills to other to enhance my knowledge too.
3.50+
1+ Reviews
10+ Question Solved
Related Book For
Understanding Financial Accounting
ISBN: 978-1118849385
1st Canadian Edition
Authors: Christopher Burnley, Robert Hoskin, Maureen Fizzell, Donald
Question Posted:
Students also viewed these Accounting questions
-
The indirect method for reporting cash flows from operating activities can create an erroneous impression about noncash expenses (such as depreciation). What is the impression and why is it erroneous?
-
Explain how net cash flows from operating activities is calculated using the indirect method.
-
5. Paul borrows $136 000. He agrees to make monthly payments for the next 20 years. The interest rate being charged is 6.6% /a compounded monthly. How much will Paul have to pay each month? How much...
-
A national fast food restaurant chain has recently made the decision that their breakfast menu will now be available all day long. The product management team overseeing the breakfast lines including...
-
Mark Hancock is a self-employed attorney who operates his law practice as an unincorporated sole proprietorship. In 2014, the IRS disallowed several business deductions he took in 2012 and 2013. In...
-
A specific honey fungus measuring 2.4 miles (3.8 km) across inthe Blue Mountains in Oregon is thought to be the largest livingorganism on Earth. These fungi belongs tothe Armillaria genus, which is...
-
What is system interoperability?
-
Presented below are a number of independent situations. Instructions For each individual situation, determine the amount that should be reported as cash. If the item(s) is not reported as cash,...
-
We represent the manufacturer of an exercise ball. Our client is being sued because its ball burst while a teenage championship wrestler was doing a dumb bell press. Your lawyer walks in your office...
-
The management at Ohio National Bank does not want its customers to wait in line for service for too long. The manager of a branch of this bank estimated that the customers currently have to wait an...
-
Discuss the major difference between the direct method and the indirect method for presenting the operating section of a statement of cash flows.
-
Explain why it is important to a companys financial health to have a positive cash flow from operations.
-
Complete the table: Adjusting Entry Balance in Allowance Cfor Doubtful Accounts is ignored Debit Allowance Method Two Credit approaches Balance in Allowance Dfor Doubtful included
-
What are assets-in-place? What are growth options?
-
How are gains to bidding firms related to exchange rates?
-
Discuss the evidence on the determinants of capital structure?
-
In what ways can one firm gain control over the assets of another firm?
-
In what ways are the winners and losers in cross-border mergers and acquisitions different than in domestic U.S. mergers and acquisitions?
-
Define mass number. What is the difference between mass number and atomic mass?
-
In exchange for land, the company received a 12-month note on January 1. The face amount of the note is $1,000, and the stated rate of interest is 13%, compounded annually. The 13% rate is equal to...
-
The strut is subjected to a vertical shear of V = 130 kN. Plot the intensity of the shear-stress distribution acting over the cross-sectional area, and determine the resultant shear force developed...
-
On January 15, 2020, the board of directors of Miz Corporation voted to consolidate its outstanding common shares on the basis of one post-consolidation common share for every 20 pre-consolidation...
-
Ostuni Limited is a Niagara-on-the-Lake, Ontariobased winery producing blended, premium, and ultrapremium wines, which are sold globally. The company has a strong distribution network in Canada...
-
The following information is available for Smokey Smith Inc. for the preparation of its December 31, 2020, financial statements: Number of common shares outstanding...
-
Marea's Cakes sells its cakes for $30 each. Ingredients cost Marea on average $10 per cake and she pays her baker $10 per cake. For the upcoming year, Marea's fixed costs will be $50,000 and she...
-
The statement of cash flow consists of three main activities, as follows: Operating Investing Financing Each section provides the reader with details on where the cash came from and where the cash...
-
How would i calculate the desired ROI per unit based on this information: $65Per Unit Direct Materials $48.00Per Unit Direct Labour $16.00Per Unit Variable Manufacturing Overhead $12.00Per Unit...
Study smarter with the SolutionInn App