How is net operating profit after tax (NOPAT) different from cash flows provided by (and to) operating activities (CFO)?

Q: Statement I: Under accrual accounting the computation of the entity’s net income is by deducting the…

A: Under accrual accounting, expense are recognized even if they are not actually paid and income is…

Q: What items are included in the company's operating income?

A: The performance of the company will be evaluated using the operating income of the company.…

Q: Why is the income statement an important input for a company’s balance sheet and statement of cash…

A: Income statement: It is an important financial statement of any company. It is linked to the balance…

Q: Is it true that the book value of a company equals the value or it's assets according to their…

A: Book value of the firm is the value of its liquidating i.e the total amount when its assets are sold…

Q: Distributions of the net income of a business to its owners are called: O dividends O monetary unit…

A: Financial statement of the company is the written records of the performance of a company. It is…

Q: Working Capital is a measure used to assess the liquidity of the company, computed as current assets…

A: The Answer is false Refer step2 for explanation

Q: Cash Basis Accounting Question: How can cash basis accounting often mislead financial statements in…

A: Financial statements are formal records that provide a summary of an organization's financial…

Q: The relationship between current assets and current liabilities is   a. useful in determining…

A: The answer is as fallows

Q: Describe how changes in non-cash items, such as depreciation and deferred taxes, can impact a…

A: The cash flow statement is a financial statement that presents the inflows and outflows of cash and…

Q: How do financial statements (balance sheet, income statement, and cash flow statement) contribute to…

A: Financial statements are official records that offer a summary of a company's cash flow, position,…

Q: In Worldcom and Enron accounting scandal, they classified operating expenses as capital investments…

A: Capital investments: It refers to the investments of funds in the capital assets that have an…

Q: If the flow that represents the resources generated by the company regardless of how it is financed…

A: The flow of operation captures the cash generated or consumed by the company's core business…

Q: for the cash flow to shareholders wouldnt the addition to retain earning be included?

A: Cash flow is the movement of cash. It can be inflow or outflow. Where cash comes comes, it is called…

Q: Which of the following accounting methods is commonly used for recognizing income and expenses in…

A: Accrual basis accounting is the most common accounting method used for recognizing income and…

Q: What is the primary purpose of the income statement? A) To report the company's cash flow activities…

A: The income statement is a crucial financial report that provides a detailed overview of a company's…

Q: Which financial ratio under the categories of profitability, asset utilization, liquidity, and debt…

A: Financial ratio can be defined as the accounting ratio which helps the business in evaluating the…

Q: How does the concept of fair value accounting influence the valuation of assets and liabilities on a…

A: Fair value accounting is a financial reporting approach where companies measure and report their…

Q: how can the gain on the sale of invesment be a deduction from net income in determining the cash…

A: Statement of cash flows: Cash flow statement is also known as statement of cash flows. It is a…

Q: mount of dividends that a corporation may declare? a. Cash flow test b. Book value test c.…

A: The right answer is d. Income to expense ratio test

Q: An analyst has calculated a ratio using as the numerator the sum of operating cash fl ow, interest,…

A: The interest coverage proportion is a debt ratio that defines how quickly a business can pay…

Q: On a corporate income statement, income from continuing operations a. will exceed net income. b.…

A: Income from continued operations is the income which is calculated after subtracting operating and…

Q: Contributions to capital from company's owners are

A: Contributions to capital from a company's owners represent the equity or ownership interest that…

Q: What is E&P and how is it different than a company's net income?

A: E&P stands for "Earnings and Profits" and is a tax concept used by the Internal Revenue Service…

Q: Which of the following best represents operating income? Seleccione una: Oa. Income after financing…

A: Income after financing activities (option a): This option describes the net income remaining after…

Q: Which item of the income statement represents the taxable income of the firm?     EBIT…

A: Taxable income is the income after deducting all the expenses in the business, before applying tax…

Q: How can we n determine the net income (profits) of the firm mainly for the operating activities?

A: Statement of cash flows: It is one of the financial statements that show the cash and cash…

Q: When a company decides to pay a dividend, explain what makes the payment a dividend as opposed to…

A: Dividends will be declared and paid by the companies to their shareholders. There are two types of…

Q: what is the difference between paid in capital and retained earnings

A: The paid in capital and retained earnings are the part of statement of shareholders equity.

Q: ​In which two ways is corporate profits tax similar to the payments to common shareholders (owners)…

A: Shareholders are entitled to share in the company's profits. A corporate tax, also called…

Q: What is the significance of the revenue cycle in a company's financial statements?

A: Fiscal statements are in- depth reports that  give a summary of the  fiscal activities and…

Q: How does the concept of depreciation impact a company's financial statements and overall financial…

A: Depreciation is a crucial concept in accounting that reflects the gradual decrease in the value of…

Q: Will taxable income (or losses) and capital gain (or loss) be shared in the same proportion that…

A: Taxes paid are reported as operating activities, even taxes related to investing and financing…

Q: Explain “ACCRUAL BASIS” and “CASH BASIS” briefly with your own word by giving specific examples. If…

A: The accrual basis of accounting represents that the revenue and expenses would be recorded when it…

Q: What are the cash flow effects when a company uses the equity method to record its proportionate…

A: The equity method of financing is the method through which a corporation records and reports its…