What is the difference between a cash basis and an accrual basis measure of performance?

Q: What are the measurement alternatives involved with using ROA as a performance measure? For example,…

A: The return on asset is the financial ratio that is used by the company in order to analyse how…

Q: What formula is used to determine net profit

A: Net profit is the actual income earned by an organization after paying all the expenses. It is…

Q: Which one of the following methods is based on net profit rather than cash flows? a. net present…

A: We use capital budgeting to determine if a project is financially viable or not. We accept viable…

Q: What is the use and purpose of Financial Performance Measures and Non-financial Performance…

A: Although financial indicators are vital for performance evaluation, many businesses utilize a…

Q: Define cash-basis net income.

A: Cash basis of accounting: Cash basis of accounting refers to the recognition of financial…

Q: Utilities expense 2,180 Equipment 66,600 Accounts payable 17,520 Cash 11,460 Salaries and wages…

A: Formula: Net income = Total Revenues - Total Expenses Deduction of total expenses from Total…

Q: Explain Net Income versus Cash Flow?

A: Definition: Statement of cash flows: This statement reports all the cash transactions which are…

Q: What is the quantitative disclosure of lessor?

A: Definition: Lease: Lease is a contractual agreement whereby the right to use an asset for a…

Q: rual profit

A: Difference between Cash and Accrual Profit The cash basis and accrual basis of accounting are two…

Q: Definition of income measurement?

A: The income statement is one of the financial statement of the business.

Q: what are the differences between profit and cash?

A: Profit and cash are two quite related but two different things.

Q: What is payout period and how is it calculated?

A: Companies employ various methods in the process of selection of the most financially appropriate…

Q: What is the accounting rate of return?

A:

Q: How does accounting rate of return (ARR) differ from the internal rate ofreturn (IRR)?

A: Introduction: Capital budgeting is an investment criterion or decision making mechanism for…

Q: What is income approach measurement?

A: Step 1 The income approach is a real estate valuation tool that determines fair market value based…

Q: The following information is available from the most recent financial statements of the Attaché…

A: Debt to asset ratio = Total liabilities/Total assets x 100

Q: What is the net income

A: Income refers to the revenue which is received by the business when goods and services are sold or…

Q: Distinguish between operating income and net income?

A: The main purpose of carrying on business operation is earning profits or income. It is the incentive…

Q: How do you solve the gross margin and Net income?

A: The income statement is one of the major financial statements prepared to outline and document the…

Q: What is the difference between the net aggregate cash inflow and the net aggregate incomes?

A: The net cash flow of an association speaks to the entirety over some undefined time frame of the…

Q: What is the strategy based on the income statement?

A: Income Statement is one of the most important part of any Financial Statement of the company. First…

Q: What is the cost constraint, and how does it affect financial reporting?

A: Under financial accounting, constraints are referred to as boundaries or guidelines prescribed in…

Q: Which of the following ROIs uses the income computed under the accrual basis? A. Accounting rate…

A: The question is related to Capital Budgeting.

Q: Total interest expenses Total noninterest income Securities gains (losses) Income taxes Dividends to…

A: The net income is the net profit of the company earned during the period. The net income includes…

Q: How is gross profit calculated, and what does it represent?

A: Gross profit is the difference of amount obtained by subtracting Cost of goods sold from Net…

Q: What do you mean by the term "income approach"?

A: The income approach is a real estate valuation technique that is computed by dividing the…

Q: Retained earnings, January 1, 2022 $87,100 Advertising expense 2,340 Dividends 7,800 Rent expense…

A: Net Income: The net income of the business is determined by subtracting the total expenses from the…

Q: Is Cash Flow more important than  Accrual Based Income?

A: Cash flow: It can be defined as the aggregated balance of cash and cash equivalents that are…

Q: Differentiate between net income and net cash flow?

A: Net Income is the difference between revenue and expenses recognized in an accounting period.Net…