In computing the periods net operating cash flows, why are decreases in liabilities and increases in current

Question:

In computing the period’s net operating cash flows, why are decreases in liabilities and increases in current assets deducted from net income?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Cornerstones of Managerial Accounting

ISBN: 978-0324660135

3rd Edition

Authors: Mowen, Hansen, Heitger

See More Books

Question Posted: Feb 03, 2012 07:07 AM

See More Questions

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...
In computing the periods net cash operating flows, why are noncash expenses added back to net income?
Why are preferred dividends deducted from net income when calculating EPS? Are there circumstances when this deduction is not made?
Elmira, Inc had $20,000,000 of bonds outstanding on Dec 31, 2018. The ten year bonds were issued on Jan 1, 2012 for $21,000,000. Elmira can call the bonds at 102% any time after Jan 1, 2018. At the...
What are the statutory requirements of Section 351? What is the definition of control under Section 351? Why does Congress require shareholders to control a corporation to receive a preferential tax...
Please answer the following questions in about 100- 200 words. 1.For an agency agreement to be binding between the principal and agent, what is required and what is the effect if a required element...
Define engineering and natural strains.
On June 30, 2014, the balances of the accounts appearing in the ledger of Simkins Company are as follows: Instructions 1. Does Simkins Company use a periodic or perpetual inventory system? Explain....
At greater than the critical angle: Part of the light reflects back into the n medium, the remainder travels along the boundary between the two mediums. The light is absorbed by the surface of the...
The cargo space of a refrigerated truck whose inner dimensions are 12 m x 2.3 m x 3.5 m is to be precooled from 25°C to an average temperature of 5°C. The construction of the truck is such...
In computing the periods net operating cash flows, why are increases in current liabilities and decreases in current assets added back to net income?
Explain the reasoning for including the payment of dividends in the financing section of the statement of cash flows.
Westwood Tanning Salon bought three tanning beds in a $19,000 lump-sum purchase. An independent appraiser valued the tanning beds as follows: Tanning Bed ___________________ Appraised Value 1...
In which of these is an employee accountable to two immediate overseers: a functional overseer and a divisional overseer? Formal organization Informal structures Functional structure Matrix...
Three core value disciplines that distinguish a business from the race: Operational excellence Customer intimacy Product leadership All of the above
The external environment of the organization includes: Technological factors Economic factors Demographic factors All of the above
The __________ approach is based upon machine theory. Systems Human relations Contingency Classical
Which of these is a process where the concentration of decision-making is in a few hands? Span of control Centralization Decentralization None of the above
How does the firms internal condition affect its actual capital structure?
The slopes of the tangents at the points where the curve y = x2 - 4x intersects the X-axis is 1) 1 2) +2 3) +3 4) +4
What is basal sliding, is it more common to polar or temperate glaciers, and what do you propose should be its connection to scouring or abrasion?
J& B Appliance provides repair services for all makes and models of home appliances. J& B Appliance charges customers for labor on each job at a rate of $ 76 per hour. The labor rate is high enough...
1. Why do managers use a predetermined manufacturing overhead allocation rate rather than the actual rate to cost jobs? 2. Jobs will typically be overcosted or undercosted. Is one worse than the...
EasyPacks manufactures backpacks. Its plant records include the following materials-related transactions: Purchases of canvas (on...
How do advanced deadlock detection algorithms operate within large-scale systems, and what are the trade-offs between computational complexity and the speed of deadlock resolution ?
Provide an example of typical consumers of energy in real life. Discuss their motives for energy consumption based on economic behavioral models.
How does the concept of a "deadlock-free" system align with the practical realities of resource management in operating systems, and what are the potential drawbacks of striving for complete deadlock...

In computing the periods net operating cash flows, why are decreases in liabilities and increases in current

Question:

Step by Step Answer:

A decrease in a current liability means that cash pay...View the full answer

Cornerstones of Managerial Accounting

Students also viewed these Managerial Accounting questions