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Income statement concentrates on operating part while fund flow statement throws light on the activities and direction of operations. comment?
Wiki User
∙ 11y ago
Income Statement I/S focuses on how the company recognized income, according to the rules of income recognition under a particular system (GAAP, Tax, or Internation Financial Reporting standards). This statement separates the income according to operations, financing and extraordinary items. So, for example, one can see gross and net profit from operations and then financing items like depreciation, interest expenses, and taxes in second part.
Cash flow is the use and sources of cash funds during the operating period... and remember that Cash is king, since a company that is collecting more cash than spending can stay in business. One showing I/S earnings but not collecting cash is doomed to fail.
Wiki User
∙ 11y ago
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A term describing a firm's normal range of operating activities is?
The relevant range of operations.
Income from operations is gross profit less?
operating expenses
What are operating cash flows?
operating cash flows are all those cash inflows and outflows due to basic business operating activities.
How do you find the net cash provided by operating activities?
Net cash provided by operating activities can be find out by adjusting the net income amount from income statement for non-cash items.
What is the distinction between operating and non operation income?
Income which is generated by normal business basic operating activities is called net operating income while other income then operating income is called non operating income like interest income or dividend income etc.
A term describing a firm's normal range of operating activities is?
The relevant range of operations.
What is the difference between operating expenses and non-operating expenses?
An interview with a company's operations managers and a review of its commercial ambitions often give investors a clear idea of the firm's operating activities.
Formula for net operating assets?
Get the balance sheet and sererate any financing activities from the operating activities. Financing activities are anything that is interest-bearing like debt, equity investments etc and not part of the business' everyday operations. The reformatted balance sheet should look like this: Operating Activities: Current Assets - Current Liabilities = Net Current Assets + Non Current Assets - Non Current Liabilities = NET OPERATING ASSETS - Financing activities (Net Financial Obligations) = Equity Cash is not an operating asset so the basic equation is: Total Assets - Cash = Operating Assets Total Liabilities - LTD - Current LTD = Operating Liabilities NOA = Operating Assets - Operating Liabilities
Where does Wages Expense go on Statement of Cash Flow?
Wages Expenses comes under "Cash flows from operating activities" and are part of net profit from operations.
Where are operations formed?
Operations or surgeries are performed in operating rooms, operating suites, or surgical theaters. These terms are used interchangeably.
Where operations are preformed?
In operating theatre
Why is interest paid on amounts borrowed from the bank considered to be operating activities on cash flows?
It is operating activity because business borrow from bank to fulfill it's working capital requirements and working capital is used to run day to day operations of business that's why it is operating activity.
Why is that net income does not equal cash provided by operations?
Net cash flow and net profit is not same due to inclusion of non cash items in net income that's why net income is adjusted for non cash items while preparing cash flow from operating activities.
The statement of cash flows reports a. Cash flows from Operating Activities b. Total Assets c. Total Changes to Stockholder Equity d. Changes to Retained Earnings?
a) Cash flows from Operations. It also provides information on cash flows from investing activities and finance activities.
What does the chief of naval operations do for the military?
The Chief of Naval Operations (CNO) is the highest ranking officer in the United States Navy. The CNO reports directly to the Secretary of the Navy for the command, utilization of resources and operating efficiency of the operating forces of the Navy and of the Navy shore activities assigned by the Secretary. The CNO is also a member of the Joint Chiefs of Staff.
Is operating revenues the same as total income?
Operating revenue is the revenue which is earned from basic business operating activities while in tolal income may include revenue from non operating activities as well.
The basic operations of a computer are managed by the?
operating system
