Which of the following correctly describes how to reportcash?a. Restricted cash is always reported as a current asset.b. Cash can be combined with cash equivalents.c. Cash can be combined with restricted cash.d. Cash equivalents can be combined with restricted cash.

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

A: The cash account ledger record all the receipt on the debit side and expense paid credit side. A…

Q: Which of the following statements regarding selling fixed assets for cash is NOT true?

A: Meaning of Fixed Assets Fixed assets are those assets which are used for a long term and are cannot…

Q: 1. The statement of cash flows classifies cash receipts and cash payments into two categories:…

A: Cash flow statement is a statement showing the inflow and outflow of cash in an organization. It is…

Q: Transactions that involve merely purchases or sales of cash equivalents generally are not reported…

A: Generalizations refers to the broad statement which is applied to large group of people.

Q: rue or false. a decrease in cash assets is a debit?

A: Asset represents resources of the entity that are used in the process of revenue generation of…

Q: Which of the following is a means of using receivables to obtain immediate cash?  a. Factoring b.…

A: Solution: "All of the above"  are means of using receivables to obtain immediate cash.

Q: Non-business cash receipts should be included on a cash flow statement.   A.   True B.   False

A: Non business cash receipt means a receipt which is not related with business i.e it is related with…

Q: Which of the following is a method to generate cash from accounts receivable? a. Assignment b.…

A: Assignment of accounts receivable refers to the process where the account receivables are assigned…

Q: The statement of cash flows explains the difference between the beginning and ending balances of…

A: Introduction: The net amount of cash received and disbursed by an entity over a given period of time…

Q: If the indirect method is used to calculate net cash provided by operating activities, adecrease in…

A: Cash flow statement: To know the cash position in the organisation statement of cash flows is…

Q: Subject : Accounting   The existence or occurrence assertion as related to cash is concerned with…

A: Assertion means a statement made by the Company's management regarding the completeness and accuracy…

Q: Define Restricted Cash and Compensating Balances.

A: Restricted Cash: Restricted cash is defined as cash which is held for a certain purpose in future…

Q: Which of the following statements about cash received prior to the recognition of revenue in the fi…

A: When cash received before revenue recognition then it will be treated as the liability rather than…

Q: TRUE OR FALSE. If the statement is INCORRECT, explain why the statement is INCORRECT. 1. The cash…

A: The balance sheet represents the financial position of the business with assets and liabilities on a…

Q: TRUE OR FALSE?

A: Liquid assets are the assets which can be converted in to cash with in a short period. These assets…

Q: Is restricted cash included in the reconciliation of cash balances on a statement of cash flows?…

A: Restricted Cash: It refers to the money that is reserved for a specific purpose. As a result, such…

Q: Which statement(s) concerning cash is (are) true? a.cash will never have a credit balance b.cash is…

A: Introduction: Real Account: Debit what Comes in Credit what goes out.

Q: Th e assumption that the eff ects of transactions and other events are recognized when they occur,…

A: Given statement is: The assumption that the eff ects of transactions and other events are recognized…

Q: The revenue recognition principle requires that revenues always be recorded when cash is received.…

A: Revenue Recognition is one of the accounting principles that states when the company recognizes…

Q: How do you calculate an overstatement or understatement of cash recorded? *     A. recorded amount

A: Overstatement or understatement of cash recorded refers to a situation where amount recorded is more…

Q: What are cash equivalents? Provide two examples. Whyare these items often combined with cash for the…

A:

Q: Which of the following items is reported on a statement of cash flows prepared using the direct…

A: According to AS 3 on cash flow statement, cash flow statement deals with the provision of…

Q: What are the key factors that can lead to an under/overstatement of  the cash balance

A: Cash balance is the balance appearing in the Cash edger or Cash Books after all income and…

Q: Which one of the following statements best describes a cash outflow in relation to the statement of…

A: Statement of cash flow is used to show the cash inflows and cash outflows which are further…

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…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.