In connection with your audit of Brilliance Corporation for the year ended December 31, 2022, you gathered the following information: Current account at Bank of the Philippine Island Current account at Equitable PCI Bank Payroll account Foreign bank account – restricted (in USD)** Postage stamps Employee's postdated check IOU from a key officer Credit memo from a vendor for a purchase return 6,000,000 (300,000) 1,500,000 60,000 3,000 12,000 30,000 60,000 150,000 45,000 90,000 30,000 600,000 900,000 10,000 1,000,000 Traveler's check Customer's not-sufficient-fund check Money orders Petty cash fund (P12,000 currency and expense vouchers for P18,000) Treasury bills, due 3/31/23 (purchased 12/31/22) Treasury bills, due 3/31/23 (purchased 1/1/22) Change fund Bond sinking fund * current exchange rate as of December 31, 2022 is at P50 for every USD.

Q: What should the net change in cash section of the statement of cash flows always reconcile with?

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Q: Discuss in detail the difference between accounting income and cash flow

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Q: Does gross fixed assets belong to operating, investing, or financing activities on the statement of…

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Q: How is the account Cash classified and what kind of balance should it have?

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Q: What accounts on the balance sheet must be evaluated when completing the investing activities…

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Q: Exercise 1-2 The following items are included in the Cash general ledger account of SANTAN COMPANY…

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Q: What are the differences between cash and accrual basis accounting? Provide an example of each

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Q: Explain Primary Elements of the Statement of Cash Flows.

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Q: balance

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Q: describe the steps in the preparation of direct and indirect cash fl ow statements, includinghow…

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Q: Explain the differences between cash and accrual accounting.

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Q: Identify and describe the various classifications of cash flows presented in astatement of cash…

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Q: What do you know about the interrelationships between income statements, balance sheets, and cash…

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Q: Of what use is the statement of cash flows?

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Q: (a) How are cash equivalents reported in the financial statements? (b) What are some examples of…

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Q: When using the indirect method of determining net cash flows from operating activities, how is…

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Short-term Financing

Short-term financing occurs when a company finds an external funding source to run the business for a short period of time that takes less than a year to pay off. Working capital financing is another term for short-term financing. When a company's cash flow from operations is uneven, short-term financing is used to generate cash flow and cover operating expenses. Short-term finance is typically used by businesses to fund inventory, accounts receivable, and loans.