In business world, companies have tied up in inventories than in cash, yet there is no call

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

Question:

In business world, companies have tied up in inventories than in cash, yet there is no call for an inventory flow statement to be prepared in annual report. Why is cash regarded as more important than inventory?

Related Book For answer-question

Accounting concepts and applications

ISBN: 978-0538745482

11th Edition

Authors: Albrecht Stice, Stice Swain

See More Books

Posted Date: Oct 06, 2020 08:30 AM

See More Questions

Why can free cash flow be regarded as a dividend, that is, as a distribution of value rather than the value created?
Why do companies usually have more controls for cash than for other assets?
Why is the cash flow statement the most important statement for the entrepreneur?
For each polynomial function, find (a) (-1), (b) (2), and (c) (0). f(x) = x + 5x
Given the linear system x 1 x 2 + x 3 = 2, x 1 + 2x 2 x 3 = 3, x 1 + x 2 + x 3 = 2. a. Find value(s) of for which the system has no solutions. b. Find value(s) of for which the system has an...
Show how a 9-bit microoperation field in a microinstruction can be divided into subfields to specify 46 microoperations. How many microoperations can be specified in one microinstruction?
Perform economic analysis for the water pitcher product development project in Exercise 5.12. Specifically, determine the investor's rate of return for this product. There is no correct answer to...
Your supervisor has asked you to research the following situation concerning Owen and Lisa Cordoncillo. Owen and Lisa are brother and sister. In May 2018, Owen and Lisa exchange land they both held...
Explain the environmental and safety considerations in crystallization processes, focusing on strategies to minimize hazardous waste, reduce energy consumption, and ensure process safety through...
At 31 December 20X8, Northern Resources Ltd. reports the following on its statement of financial position: Bonds payable, 5%, interest payable semi-annually on 30 June and 30 December Discount on...
Two well-insulated stirred tanks of constant fluid volume V and V respectively are connected in series via a pipe with constant flowrate F as shown in Figure 1 below. Initially the system is at...
Assume an 8051 microcontroller is used with XTAL = 11.0592 MHz. Determine the square wave period (in milliseconds) of the square wave produced by the following program. Exclude the overhead due to...
Let L = {4,8,12,16, ...} be the set of multiples of 4, and let M = {50, 100, 150, ...} be the set of multiples of 50. (a) Find the next four elements of set M. (b) Describe LnM. (c) What is the...
01. A diode is a semiconductor device that allows one direction only 02. The primary purpose of a current 03. A is a semiconductor device that can amplify or switch electronic signals. 04. The...
Pretend that your city is not in Canada and is part of a new country. Decide on 10 rights and freedoms that all your citizens will have (your constitution). Describe how the head of Taiwan will be...
Entity-level controls involve all four components of internal controls Oall auditor and client controls all controls recommended by the internal audit function O all five components of internal...
e view View Help Acrobat When calculating risks in Excel, use the Risk ID field to perform distinct counts. When calculating internal controls in Excel, use the Control ID field to perform distinct...
Subtract the polynomials. (-x+x-5) - (x-x + 5)
What does the fixed manufacturing overhead budget variance measure?
On January 2, 2012, Austen Company contracted to lease a mainframe computer on a noncancelable basis for seven years at an annual rental of $85,200, payable at the end of each year. The computer has...
The following amounts are shown on Plymouth Companys adjusted trial balance for the year 2012: Accounts Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 36,000...
(a) Among 880 smart phones sold by a retailer, 72 required repairs under the warranty. Estimate the probability that a new phone, which has just been sold, will require repairs under the warranty....
A car rental agency has 19 compact cars and 12 intermediate-size cars. If four of the cars are randomly selected for a safety check, what is the probability of getting two of each kind?
With reference to Exercise 3.34, suppose that the questionnaire filled in by one of the 150 persons is to be double-checked. If it is chosen in such a way that each questionnaire has a probability of...

In business world, companies have tied up in inventories than in cash, yet there is no call

Question:

Expert Answer:

Importance of cash than Inventory 1 Cash is so important because it later becomes the payment for th... View the full answer

Accounting concepts and applications

Students also viewed these accounting questions