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Q: Which of the following method is not based on concept of time value of money? A. Discounted payback…

A: Time value of money is based on the concept, that money you have today worth more than it in the…

Q: Which of the following statements about accruals is true?  Select one: A. All accrual accounting…

A: Accruals basis of accounting takes when the revenue and expenses are made regardless of the payment…

Q: Modified cash basis or hybrid basis differs from accrual basis in the computation of Gross profit…

A: solution concept accrual basis of accounting                 This concept of accounting means that…

Q: what are the differences between the income statement and statement of cash flows and can you show a…

A: The financial statements of a company are prepared to measure the financial performance of the…

Q: esearch articles that deal with the benefits which might be derived from the Statement of Cash…

A: In accounting cash flow statement is that financial statement that shows different soucres of cash…

Q: Which of the following should NOT be taken into account in calculating free cash flow? Select one:…

A: Free Cash Flow = Net income + Depreciation – Change in Working Capital – Capital Expenditure

Q: One of the shortcoming of the payback method is that it ignores cash flows after the payback period.…

A: Payback method has serious disadvantages like it Ignores the time value of money.

Q: Which of the following is NOT a reason why cash flow may not equal net income? a. Capital…

A: The relationship of cash flow with net income is  Cash flow =net…

Q: An increase in Accounts Receivables is :  a A negative item for calculating Operating Cash Flow  b…

A: Accounts receivables is that amount of the total sales which customers still owe to the firm.

Q: more than one answers is correct ( )Which of the following should NOT be added to net income in…

A: In calculation of cash flow from Operating Activities using indirect method, the following…

Q: When using EBITDA instead of net income to measure a firm's operational characteristics, why are…

A: EBITDA means earnings before interest, tax, depreciation and amortisation. It means all these have…

Q: To find NPV, it requires

A: NPV or net present value technique is used to determine the present value of all future cash flows.…

Q: Discuss why the Free Cash Flow can not be calculated directly by taking the numbers from Cash Flow…

A: Free cash flow which is also written as FCF is the amount of cash which has been left after payment…

Q: Which of the following would be subtracted from net income when using the indirect method to derive…

A: The cash flow from operating activities can be computed either directly or indirectly.  The indirect…

Q: Accruals occur when the cash flow precedes either revenue or expense recognition. True/False?

A: Under accrual basis of accounting revenue and expense are recorded in the financial statement when…

Q: What are the disadvantages of only accounting for cash income and expenses in basic cost and return…

A: Cost and return analysis is also regarded as cost-benefit analysis which is carried out to make…

Q: Which of the following has a different effect on net profit than it does on cashflow? A.Cash sale…

A: Net Profit will be affected by revenues and expenses whether accrual or cash basis. On the other…

Q: he amount of revenue that is foregone from an alternative use of cash is called a.sunk cost…

A: Revenue refers to the amount earned by operating normal business activities. In order to determine…

Q: In the Statement of Cash Flows, depreciation is ignored because it is a non cash expense. Group of…

A: Statement of cash flows is prepared to analyze the cash flows during the period

Q: Accrual income attempts to measure the resource inflows and outflows generated by operations during…

A: Accounting:   Accounting is the process of recording the financial transaction of the organization…

Q: ded 31 December 2019 Description Net Profit before Taxation Depreciation Sale of Land and Building…

A: The Statement of Cash Flow (CFS) forms a part of the financial statement prepared at the end of each…

Q: Unearned revenue adjustments are needed when cash is received before ?revenue is earned False ( True

A: The deferred revenue is the amount received by the business entity from customers before providing…