What is the difference between the direct and indirect methods of deducing cash generated from operations? Can
Question:
What is the difference between the direct and indirect methods of deducing cash generated from operations? Can you see an advantage of using the indirect method rather than the direct method from the perspective of an external user of financial statements?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 83% (6 reviews)
The direct and indirect methods are two different approaches to calculating the cash generated from operations section of the statement of cash flows ...View the full answer
Answered By
ROXAN VEGA
I have extensive hands-on experience and proficiency in assisting students in various subjects. During my tutoring sessions, I prioritize creating a supportive and engaging learning environment. I strive to understand each student's unique learning style and tailor my teaching methods accordingly. I am patient, empathetic, and skilled at breaking down complex concepts into simpler, more manageable parts. I encourage active participation and discussion, promoting critical thinking and problem-solving skills.
One of my strengths as a tutor is my ability to adapt to different learning needs and styles. I can explain difficult concepts using real-life examples, visual aids, or interactive exercises, depending on what works best for the student. I also provide clear explanations, answer questions, and offer guidance in a clear and concise manner.
0.00
0 Reviews
10+ Question Solved
Related Book For
Financial Accounting For Decision Makers
ISBN: 9781292251257
9th Edition
Authors: Peter Atrill, Eddie McLaney
Question Posted:
Students also viewed these Business questions
-
What is the difference between the direct and indirect methods of deducing cash generated from operations?
-
What is the difference between a direct and indirect statement of cash-flows, and why would a company prefer to utilize one over the other?
-
What is the difference between a direct and an indirect method of proof? When is each used? Explain.
-
Discuss what you see as the role of ethics as it pertains to management and managers. Does management, in your view, help shape the values and ethics of an organization? What about an organization's...
-
You are the vice president of finance of Constance Corporation, a retail company that prepared two different schedules of gross margin for the first fiscal quarter ended July 31. These schedules...
-
The constants obtained by Shende and Sharma (1974) for use in Eq. (16-72) are given in the following table. Assume their experiments with \(\mathrm{NaOH}-\mathrm{SO}_{2}\) were done at \(1.0...
-
May a forensic accountant have a monetary interest in the outcome of a court decision?
-
Sales for the past 12 months at Dalworth Company are given here. a. Use a three month moving average to forecast the sales for the months May through December. b. Use a four-month moving average to...
-
Each of the three independent situations below describes a finance lease in which annual lease payments are payable at the beginning of each year. The lessee is aware of the lessor's implicit rate of...
-
IAS 7 carefully defines cash (and cash equivalents). Can you explain why the authors of this standard were so careful and precise in their definition?
-
The following financial statements for Blackstone plc are a slightly simplified set of published accounts. Blackstone plc is an engineering business that developed a new range of products in 2013....
-
What are the typical duties of a special servicer?
-
Discuss how differences in discount rates or in ability across workers lead to differences in earnings and schooling. Under what conditions can the rate of return to school be estimated?
-
Why does the percentage gain in earnings observed when a worker gets one more year of schooling measure the marginal rate of return to education?
-
What do liabilities and equity have in common? What is the key difference between them?
-
If the very same asset is depreciated by firm A in four years and by firm B in five years, either firm A or B are not following accounting best practices. Do you agree? Why, or why not?
-
Derive the stopping rule for investments in education.
-
In terms of the great questions of economic growth discussed at the beginning of this chapter, why do the presented theories of economic growth concentrate on the growth of output per person as...
-
How does health insurance risk differ from other types of insurance risk (e.g., automobile or homeowners insurance)? What is the difference between cost sharing and cost shifting? Is retiree health...
-
Singh Enterprises, which started business on 1 January 2007, has an accounting year to 31 December and uses the straight-line method of depreciation. On 1 January 2007 the business bought a machine...
-
The following is the statement of financial position of TT and Co. (see Self-assessment question 3.1 on page 105) at the end of its first year of trading: During 2010, the following transactions took...
-
The following is the statement of financial position of TT and Co. (see Self-assessment question 3.1 on page 105) at the end of its first year of trading: During 2010, the following transactions took...
-
The following financial statements and additional information are reported. IKIBAN INCORPORATED Comparative Balance Sheets 2021 2020 $ 85,100 71,000 67,800 $ 48,000 55,000 92,500 4,800 6,200 228,700...
-
Internal Rate of Return (IRR) : Find the IRR for a project with an initial investment of $100,000 and expected cash inflows of $30,000 annually for 5 years. How does the IRR help in assessing the...
-
The Cutting Department of Ivanhoe Company has the following production and cost data for July. Production Costs 1. Completed and transferred out 10,320 units. Beginning work in process $0 2. 2,580...
Study smarter with the SolutionInn App