What causes the decrease in Assets? A. Cash Purchases B. Liabilities C. Payment of Expenses D. Retained Earnings

Q: source

A: Decrease in accounts payable: When the current liabilities of the company decreases, it means that…

Q: Which should be subtracted from the net income when using the indirect method? A. Loss on sale of…

A: A cash flow statement is a financial statement that summarizes the cash and cash equivalents…

Q: hich of the following would be classified as a use of cash?     a. An increase in depreciation.…

A: Depreciation is a non cash expense, hence increase or decrease of depreciation does not effect cash.

Q: What is needed to solve a Return on Assets? Balance sheet only or Balance Sheet with Income…

A: Business needs and calculates various type of ratios in its business. These ratios are meant for…

Q: and

A: Answer: Income statement-Negative effect: Inventories are not recorded in the income statement.…

Q: How does a decrease in income taxes receivables on the balance sheet, impact cash flow?  What is the…

A: Step 1   The statement of cash flows is a statement that shows cash flows movements.

Q: What is the difference between accounting income and cash flow?

A: Basis of accounting: It can be defined as the methodology that is used by the business to record the…

Q: The flow of money or its equivalent produced by an asset dividends and interest a. investment b.…

A: An investment is defined as an asset or invested, which used in building the wealth as well as…

Q: Which of the following should be deducted from net income in computing net cash flows from operating…

A: Introduction: Statement of cash flows: All cash in and out transactions in an accounting period is…

Q: How to adjust net income to cashflow.

A: In cashflow there are 2 methods for calculating operating cash flow, they are: a. Direct Method b.…

Q: Which of the following items will not be shown in the balance sheet of ahotel

A: Balance sheet is an orderly arrangement of assets and liabilities of a  business entity on a…

Q: Which of the following represents a source of cash in the investing section?A. sale of investmentsB.…

A: Cash flows statement is one of the financial statement of business, which shows all cash inflows and…

Q: How to determine cash portion of retained earnings

A: Retained earnings are that part of profit which is reinvested in the business. It is the amount left…

Q: Which of the following is a cash inflow? a. an increase in dividend payment b. a decrease in accrued…

A: Introduction: Cash flow is nothing but the cash actually receiving less cash outlay or outflow from…

Q: How do you treat net loss on a balance sheet?

A: Balance sheet: It refers to a financial statement that shows all the liabilities, assets, and…

Q: If current assets other than cash increase, what is the effect on cash? What about a decrease in…

A: Statement of cash flows: It is one of the financial statement that shows the cash and cash…

Q: does accounts payable and cash count towards ending retained earnings

A: Closing entries are the entries which are prepared to close all the temporary accounts and then the…

Q: Which of the following normally has a net credit balance? A. Asset accounts such as cash, accounts…

A: Credit Balance :— It means Credit is greater than debit. It is listed in credit side of trial…

Q: Which of the following is NOT included in the financial assets? A. Cash. B. Investments in…

A: The financial assets include the liquid assets of the business.

Q: True or false Credits Increases in liabilities and revenue. Decrease in assets and expenses?

A: Assets - Assets are the resources owned by the company from the capital invested. Liabilities -…

Q: A decrease in economic benefits or decrease in assets or increase in liability resulting in decrease…

A: Expenses are decreases in economic benefits during the accounting period in the form of outflows or…

Q: Which of the following calculations of net income is correct?   Select one: Cash receipts…

A: The objective of the question is to identify the correct formula for calculating net income in…

Q: . These are decreases in economic benefits during the accounting period in the form of outflows or…

A: Elements of Financial Statements: The fundamental groups of line items that make up financial…

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: Which of the following assets would not be included as a quick asset? a.Merchandise inventory b.Cash…

A: We first need to understand the meaning of quick asset. Quick assets are the assets which is…

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: The cost of new non-current assets is a cash payment not an expense in the statement of profit or…

A: Non-current assets: The assets purchased for the use in business for the long-term or for the period…

Q: How do excessive inventories affect the following financial statements; Income Statement, Balance…

A: Financial statements are documents that provide information about a company's financial performance,…

Q: What is disaggregated financial information?

A:

Q: Which of the following is not normally decreased by a cash outflow transaction?     a. Payroll…

A: Under accrual basis of accounting transactions are recorded as and when they occur irrespective of…

Q: could income summary be considered retained earnings? or cash? or something else?

A: Financial statements includes income statement, balance sheet and cash flow statement. Financial…