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What factors determine the need for cash in the firm's operation?

Operating Cash Flow is calculated using adjusting net income for items (depreciation, changes to accounts receivable, and changes to inventory).


What does in mean when long term liabilities is less than current liabilities?

It means that the business is conducted out of short term cash. Hence small changes in the environment can affect the cash flow.


How does profit link with changes in assets and liabilities?

Profit is the difference between your assets and liabilities if you have $30,000.00 in assets and $20,000.00 in liabilities = you would have $10,000.00 in profit If you have 22,000.00 in Assets and $30,000.00= you would have $-8,000.00 in loss can be written as ($-8,000.00) usually in Red hope this helps


What is volatile liabilities?

Volatile liabilities refer to financial obligations that can fluctuate significantly in value or amount over time, often due to changes in market conditions, interest rates, or other economic factors. These liabilities can include items such as floating-rate debt or derivative contracts, where the costs can vary based on underlying asset prices or rates. Managing volatile liabilities is crucial for maintaining financial stability, as unexpected changes can impact cash flow and overall financial health.


Is a device used to record the changes in the accounting elements?

Yes, a device used to record changes in accounting elements is typically referred to as an accounting ledger or bookkeeping software. These tools help track financial transactions, categorize accounts, and maintain accurate financial records. They enable businesses to monitor income, expenses, assets, and liabilities, ensuring compliance and informed decision-making.

Related Questions

Is calculated by adding back noncash expenses to net income and adjusting for changes in current assets and liabilities?

net cash from opertional activity


What factors determine the need for cash in the firm's operation?

Operating Cash Flow is calculated using adjusting net income for items (depreciation, changes to accounts receivable, and changes to inventory).


What factors determine the need for cash in the firms operations?

Operating Cash Flow is calculated using adjusting net income for items (depreciation, changes to accounts receivable, and changes to inventory).


What factors determine the need for cash in the firm's operations?

Operating Cash Flow is calculated using adjusting net income for items (depreciation, changes to accounts receivable, and changes to inventory).


What are Dependencies between current assets and current liabilities either through balance creations or balance changes?

dependencies between current assets and current liabilities either through balance creations or balance changes.


What are the two methods of calculating owners equity?

Owners' equity can be calculated using two primary methods: the accounting equation and the statement of changes in equity. The accounting equation states that owners' equity equals total assets minus total liabilities (Assets = Liabilities + Owners' Equity). Alternatively, the statement of changes in equity summarizes the changes in equity over a specific period, considering investments, withdrawals, and retained earnings. Both methods provide insights into the financial health and ownership stake in a business.


What does in mean when long term liabilities is less than current liabilities?

It means that the business is conducted out of short term cash. Hence small changes in the environment can affect the cash flow.


How does profit link with changes in assets and liabilities?

Profit is the difference between your assets and liabilities if you have $30,000.00 in assets and $20,000.00 in liabilities = you would have $10,000.00 in profit If you have 22,000.00 in Assets and $30,000.00= you would have $-8,000.00 in loss can be written as ($-8,000.00) usually in Red hope this helps


What is volatile liabilities?

Volatile liabilities refer to financial obligations that can fluctuate significantly in value or amount over time, often due to changes in market conditions, interest rates, or other economic factors. These liabilities can include items such as floating-rate debt or derivative contracts, where the costs can vary based on underlying asset prices or rates. Managing volatile liabilities is crucial for maintaining financial stability, as unexpected changes can impact cash flow and overall financial health.


Is a device used to record the changes in the accounting elements?

Yes, a device used to record changes in accounting elements is typically referred to as an accounting ledger or bookkeeping software. These tools help track financial transactions, categorize accounts, and maintain accurate financial records. They enable businesses to monitor income, expenses, assets, and liabilities, ensuring compliance and informed decision-making.


Whatcaused the changes to which Germany Switzerland and Australia are adjusting today?

these countries have strong economies.


What is schedule of changes in working capital?

Working Capital is a measure of a company's short term liquidity or its ability to cover short term liabilities. Working capital is defined as the difference between a company's current assets and current liabilities.