Which of the following transactions affects both the income statement and the balance sheet? O Collection of accounts receivable O Loan from bank O Depreciation on equipment O Declaration of cash dividend O Purchase of inventory on account

Q: Which calculation

A: A pro forma balance sheet is similar to a historical balance sheet, but it represents…

Q: What is the purpose of cashflow statement ? What are the activities  that are  affecting the…

A: The cash flow statement is one of the financial statements of the business. It records the cash flow…

Q: Does a payment on a liability account with cash show up in the statement of cash flows?

A: Cash Flow Statement - Under Cash Flow there are three type activities involved - Operating…

Q: Revenue and Expense Accounts Are revenue and expense accounts equal to equity in how cash is a part…

A: Revenue: Revenues are earnings of business by sale of goods and services in business. It is earned…

Q: What is the purpose of adjusting entries as they relate to the difference between cash accrual…

A: Introduction The Main purpose of adjusting entries is to convert all cash transactions into accrual…

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: Under which basis of accounting are revenues and expenses reported in the income statement in the…

A: Accrual Accounting - Under Accrual Basis of accounting revenue is recorded only if earned and…

Q: Garcia Company recognized revenue on account. The recognition will affect which of the following…

A: According to the revenue recognition principle, the revenue is recognized at the time sales occurred…

Q: The assumption that requires that only those things that can be expressed in money are included in…

A: The generally  accepted principles of accounting are called concepts.The concept guide the…

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: balance

A: Income statements are statements that helps us to know the company's profits for a particular time…

Q: What advantage do you see in compiling financial data into standardized statements like the Income…

A: Standardized statements also acknowledged as financial statements, these statements such as balance…

Q: Question: In accounting, what does the term "accrual" refer to? a) The recognition of revenue or…

A: The accounting records the transactions using different methods as cash basis accounting or accrual…

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: What is the point of included non-cash entries such as accruals and depreciation in a financial…

A: Lets understand the basics. Adjusting entry is required to make to record correct amount of revenue…

Q: Revenues and expenses must be recorded in the accounting period in which they were earned or…

A: The income and expenses are recorded in the income statement to estimate the profitability of the…

Q: Explain Cash versus Accrual Accounting.

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