Question: When the items needed for the additional information required by the direct method are so easy to identify from the Cash Book, why do you

When the items needed for the additional information required by the direct method are so easy to identify from the Cash Book, why do you think most companies prefer to use the indirect method?

Step by Step Solution

★★★★★

3.46 Rating (159 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

In principle the direct method is very easy to calculate You just add up a... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Business Accounting Questions!

Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...

The Weld, Bergevin, and Magrath article points out that if a company is going to intentionally manipulate earnings, they must be astute enough to present financial statements that still seem...

Now that you have background on ethics and a set of skills for evaluating ethical issues, the application to real-life dilemmas seems fairly straightforward. However, there is one additional aspect...

Need detailed SWOT Analysis Of this Case. & 500 Words Overview. STATEMENT OF CASH FLOWS: PREPARATION, ANALYSIS & LINKAGES How was Lucky Cement Limited Company able to invest Rs. 5.6 billion in a...

I got screwed over by a tutor who took my question but when it was due told me he couldn't do it. It was due today but i am going to try to get some credit. I need 6 exercises/problems done. I need...

Need help in writing attached paper. The paper has to be on CVS Health. I am also attaching the assignments from week 1 to week 5. Thank you, ASSIGNMENTS OF WEEK 1 TO WEEK 5 Week 1 I would like to...

Answering the following question using this the attached financial statement, which can also be found at https://www.sec.gov/Archives/edgar/data/80424/000008042415000070/fy141510-kreport.htm For each...

Attached is the problem I downloaded from Coursehero.com, my question is how did you get the answer to July 1 on 14-1A? I don't want go be given the answers, I want to know how you got the answers....

Refer to the information in Exercise. In Exercise HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2015 Sales (9,600 units at $225 each) . . . . . . . . . . . . . . . ....

: For each Sales Order, show how many days it took to ship the order in order by the longest order, then by Sales Order Number. Display Sales Order Number and the number of days to ship. Include the...

When a firm is regulated so that price enables it to earnest specified target present return on its capital the regulation is called

2. What factors would you consider to increase productivity by efficient material handling?

The trial balance for a small business at 31 August 20X8 is as follows: At 31 August 20X8 there was: Stock valued at cost prices 9,100 Accrued rent of 400 Prepaid business rates of 300 The motor...

J Wright, a sole trader, extracted the following trial balance from his books at the close of business on 31 March 20X9: Notes: (a) Stock 31 March 20X9 6,805. (b) Wages and salaries accrued at 31...

Three of the accounts in the ledger of Charlotte Williams indicated the following balances at 1 January 20X0: Insurance paid in advance 562; Wages outstanding 306; Rent receivable, received in...

Bentley uses the allowance method to account for bad debts. On December 31, 2020, Bentley had the following account balances related to credit sales and receivables prior to recording adjusting...

On June 15, Kersee Company sold merchandise on account to Eng Co. for $1,000, terms 2/10, n/30. On June 20, Eng Co. returns merchandise worth $300 to Kersee Company. On June 24, payment is received...

The metric used in program budgeting is A. Total cost B. Cost per output C. Marginal cost D. Cost per outcome E. Cost per activity