Under cash basis total purchase is equal to

Q: Briefly explain the difference between gross profit, net profit and EBIT.

A: Gross Profit is computed by deducting Cost of goods sold from Sales. Gross profit is the profit a…

Q: Explain how the amount of cash payments to suppliers iscomputed under the direct method.

A: Statement of cash flows: The statement of cash flows is a statement which includes all transactions…

Q: Explain the term Cash Equivalency?

A: It is an evaluation procedure by which the cost of comparable properties selling at various funding…

Q: the income statement distinguish between cash outflows and cash inflows. Please provide two examples…

A: Cash outflows mean any money going out from the business via expenditure incurred. Cash inflows mean…

Q: Define Purchase return.

A: Financial accounting is the process of recording, summarizing, and reporting all the transactions in…

Q: What is a payable bill?

A: There are three account types in accounting, that are real account, nominal amount and personal…

Q: ducing cash flow numbers, which of the following refers to a reflection of value? Select an answer:…

A: The process of figuring out how much cash a business made or spent in a given period is known as…

Q: Explain Cash versus Accrual Accounting.

A: Cash basis accounting: Cash basis accounting is the method of accounting that record revenues only…

Q: Cash flow may be represented as being determined from: -receivables -operating income -revenue…

A: Cash flows include the net amount of cash and cash equivalent of the business that shows the in and…

Q: WHERE DOES A CASH PURCHASE FALLS ON THE CASH BUDGET

A: A cash budget is a tool that indicates the amount of available cash is appropriate or not for the…

Q: Illustrate the process of computing the equivalent present worth when all cash flows are given in…

A: The process to compute the equivalent present worth are: Identify the interest rate Identify the…

Q: cash flow

A: Cash flow adequacy refers to the ratio which determines how well the company has been generating…

Q: Define cash equivalents.

A: Cash equivalents are also known as cash and cash equivalents. These have low risk and low return…

Q: Define accrual basis accounting and contrast it with cashbasis accounting.

A: Definition of Accrual basis of Accounting  Accrual accounting means revenue and expenses are…

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is