Explain cash flow statement, Accounting Basics

Assignment Help:

Explain:-
1. Why would users want to see cash flows broken out into three parts (operating, investing, and financing)? What's the purpose of this structure?
2. Companies often use Accounts Receivable to finance sales and Accounts Payable to finance short-term bills: so why aren't these listed as Financing Activities?
3. Depreciation is a method for allocating the cost of a long-term asset over the time of its use: so why is Depreciation Expense listed as a Cash Inflow?
4. Earnings Quality is a widely-used ratio in many industries: what does it mean? When is it more/less important? Why would investors/creditors care?


Related Discussions:- Explain cash flow statement

Dividends account, The Dividends account increases (debited) as well as an ...

The Dividends account increases (debited) as well as an asset cash decreases (credited) by USD 3000. Transaction 15 brings to a close the analysis of the Micro Train Company transa

061689 bussines accounting and you all i need detail, 061689 bussines accou...

061689 bussines accounting and you All i need detail how to do it i watch video but im not understanding if anybody have more specific explanation details

Create job cost summary sheet , Question: Artarmon Ltd uses a job-order...

Question: Artarmon Ltd uses a job-order costing system and a predetermined overhead rate based on direct labour cost. Estimated manufacturing overheads for the coming year were

Cash collection as point of revenue recognition, Q. Cash collection as poin...

Q. Cash collection as point of revenue recognition? Several small companies record revenues and expenses at the time of cash collection and payment which may not take place at

Dogwood florist opened a business january 1st 2010., Dogwood florist opened...

Dogwood florist opened a business January 1st 2010. During 2010, they had the following transactions and economic events. For each of the transactions and economic events prepare

Adjusting entries, Hugo Company has a five-day workweek and pays salaries o...

Hugo Company has a five-day workweek and pays salaries of $35,000 each Friday. 1. Prepare the adjusting entry required on May 31, assuming that June 1 falls on a Wednesday. 2. Prep

Corporate accounting, need to get assignment done, its corporate accounting...

need to get assignment done, its corporate accounting.

What is trial balance, Q. What is trial balance? The firm credits two A...

Q. What is trial balance? The firm credits two Accounts Payable and accounts Cash in this one entry. But the dollar totals of the debits and credits are equal. Cyclically accou

Write Your Message!

Captcha
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