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Depreciation affect cash flow?
There is no affect of depreciation on cash flow that's why in indirect method of cash flow net income is adjusted for depreciation to calculate cash flow from operating activities.
What is a runoff cash flow?
Runoff cash flow refers to assets that are prepaid before maturity or liabilities that are withdrawn before maturity. In either case, the result is higher interest rate risk. This is because the interest rate risk is measured assuming no prepayment of assets or withdrawal of liabilities occur before maturity. The risk of runoff cash flows is one of the important weaknesses of the repricing model, which is commonly used model in smaller financial institutions.
How do treasury stock affect Cash flow statement?
treasury stock is shown under cash flow from financing activities as a reduction in cash.
Period expenses which do not affect the cash flow of the company should be excluded from the cash flow statement and how true is this statement?
Yes it is correct as cash flow statement only deals in cash so non cash items should be eliminated from cash flow statement.
Does capital reserve affect cash flow statement?
NO
What affect does an increase or decrease in accounts payable have on the statement of cash flow?
It effects in working capital changes in cash flow
Does the choice of cost flow method affect the statement of cash flows?
no only the method of preparing the cash flow statement can not change the actual cash flow it is just the preference of preparation.
When a cash dividend is declared it would affect the balance sheet but not the statement of cash flows?
dividend will affect the cash flow when actual cash is paid and not at the time of declaration of dividend.
How did Ferrari affect the economy?
They help increase cash flow.
What is the aim behind a cash flow note?
The aim of a cash flow note aka cash flow statement is to show how changes in income and balance sheets affect cash and/or cash equivalents. This gives an indication of how much money is flowing in and out of the company or household.
Describe circular flow model of an open economy?
it is a flow of cash between businesses,fims
Does using the direct method of preparing a cash flow statement provide a higher cash flow result than the indirect method?
Actual cash flow remains the same no matter what method is used it is just the presentation of statement and method of calculated cash flows and it does not affect amount of cash flow
