Which is not true about net operating cash flow

Assignment Help Financial Accounting
Reference no: EM132490540

Question 1) Prepayments occur when:

A. Cash flow precedes expense recognition.

B. Sales are delayed pending credit approval.

C. Customers are unable to pay the full amount due when goods are delivered.

D. Manufactured goods await quality control inspections.

E. Insurance expense is recognized.

Question 2) Which of the following is not true about net operating cash flow?

A. It is the difference between cash receipts and cash disbursements from providing goods and services.
B. It is affected by depreciation method choice.
C. Over short periods, it may not be indicative of long-run cash-generating ability.
D. Operating cash flow excludes activity related to fixed assets.
E. Under the indirect method, the operating cash flow section adjusts for non-cash activities included in net income.

Reference no: EM132490540

Questions Cloud

Calculate the pd across the ldr and its resistance : Calculate the pd across the LDR and its resistance when the voltmeter reading is 3.4V.
What amount should be included in the current liabilities : What amount should be included in the current liabilities section of West Ham's December 31, 2021 balance sheet? West Ham Inc. has the following account balance
What is the net change in retained earnings : Sheffield Co. What is the net change in retained earnings (R/E) during 2019 and what is the impact of the dividend on 2019 net income?
Define thoughts on implementation of new security policies : In 80 words or more what are your thoughts on the implementation of new security policies to the user community. What issues are you expecting to face?
Which is not true about net operating cash flow : Which of the following is not true about net operating cash flow? It is the difference between cash receipts and cash disbursements from providing goods
Find the escape velocity associated with the planet : (a) Calculate the mass of the planet. (b) Find the escape velocity associated with the planet
What is the wavelength of the sound of the ambulance : What is the wavelength of the sound of the ambulance's siren if you are standing at the position of the car? The velocity of sound in air is 343 m/s.
Energy between the two levels that participate : What is the difference in energy between the two levels that participate in stimulated emission in the excimer laser?
What is the number of common shares outstanding at december : On September 30, 2019 the company repurchased 500,000 shares of common stock. What is the number of common shares outstanding at December 31, 2019?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd