Questions And Answers Questions Ask question Search Order By: ActiveCategoryClear Filter 0 Votes 1 Ans Cash collected from customers can be derived by appropriately adjusting revenue for changes in accounts receivable 708 viewsDarshita asked February 8, 2020 0 Votes 1 Ans Depreciation is subtracted from net income in arriving at a firm’s cash flow from operations under the indirect approach to cash flow statement preparation 480 viewsDarshita asked February 8, 2020 0 Votes 1 Ans Under the direct approach to cash flow statement preparation, net cash flows from operations is arrived at by adjusting earnings for the differences between accrual-basis revenues and expenses and cash inflows and outflows during the period 561 viewsDarshita asked February 8, 2020 0 Votes 1 Ans Depreciation is added back to net income to determine cash from operating activities under the indirect method 550 viewsDarshita asked February 6, 2020 0 Votes 1 Ans The sale of fixed assets represents an investing activity 594 viewsDarshita asked February 6, 2020 0 Votes 1 Ans Paying dividends to stockholders represents a financing activity 524 viewsDarshita asked February 6, 2020 0 Votes 1 Ans Investing activities include the cash effects of selling stocks and bonds to raise capital to purchase fixed assets 699 viewsDarshita asked February 6, 2020 0 Votes 1 Ans Operating activities result from the cash effects of producing and delivering goods and services 584 viewsDarshita asked February 6, 2020 0 Votes 1 Ans It is not unusual for a start-up company to experience total negative cash flows. 527 viewsDarshita asked February 6, 2020 0 Votes 1 Ans The cash flow statement explains why a firm’s cash position has changed between successive balance sheet dates while simultaneously explaining the changes that have taken place in the firm’s noncash asset, liability, and stockholders’ equity accounts over the same period. 912 viewsDarshita asked February 6, 2020 0 Votes 1 Ans Changes in a firm’s cash position between successive balance sheet dates result only from the firm’s operating activities 487 viewsDarshita asked February 6, 2020 0 Votes 1 Ans The statement of cash flows shows the user why a firm’s investments and financial structure have changed between two balance sheets dates 649 viewsDarshita asked February 6, 2020 0 Votes 1 Ans The change in cash during a period is equal to the net income for the period 639 viewsDarshita asked February 6, 2020 0 Votes 1 Ans Subsequent events are required to be disclosed if they are material and likely to influence investors’ appraisal of the risk and return prospects of the reporting entity 617 viewsDarshita asked February 6, 2020 0 Votes 1 Ans Events that occur after the financial statements are issued are referred to as subsequent events 515 viewsDarshita asked February 6, 2020 0 Votes 1 Ans The Summary of Significant Accounting Policies would contain an explanation of the company’s revenue recognition policies 551 viewsDarshita asked February 6, 2020 0 Votes 1 Ans A related party transaction occurs when a company enters into a transaction with individuals or other companies that are connected in some way with it or its management 866 viewsDarshita asked February 6, 2020 0 Votes 1 Ans The Summary of Significant Accounting Policies explains the important accounting choices that the reporting entity uses to account for selected transactions and accounts. 579 viewsDarshita asked February 6, 2020 0 Votes 1 Ans It is permissible for a firm that reports in accordance with IFRS to emphasize its liquidity by placing current assets and current liabilities in close proximity to one another on the balance sheet 641 viewsDarshita asked February 6, 2020 0 Votes 1 Ans To facilitate global capital flows, balance sheet format and terminology used in most other countries is the same as that used under U.S. GAAP 546 viewsDarshita asked February 6, 2020 « Previous 1 2 … 20 21 22 23 24 … 128 129 Next »
