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Which of the following is not true about net operating cash flow?
Wiki User
∙ 12y ago
Which of the following is not true about net operating cash flow?
a. It is the difference between cash receipts and cash disbursements from providing goods and services.b. It is a measure used in accrual accounting and is recognized as the best predictor of future operating cash flows.c. Over short periods of time, it may not be indicative of long-run cash-generating ability.d. It is easy to understand and all information required to measure it is factual.
Wiki User
∙ 12y ago
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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 Cash Flow Forecasts Show the Need for External Funding?
true
Does financial accounting course help you know how to calculate cash flow 101?
Yes, a financial accounting course will help you know how to calculate cash flow and many other financial endeavors. I am not sure cash flow 101 is a 'true' term.
How can cash flow improvement help with everyday living allowances?
Cash flow improvement can help with everyday living allowances by letting you be aware of your true cash flow. When you know what you are spending your money on it gives you a picture of where you might need to cut back.
The cash flow on total assets ratio is defined as cash flows from operations divided by average total assets?
True
What was true about cash crops?
Cash crops could be ruined by a single disease
Is the following not true concerning the flow of energy through an ecosystem?
Since "the following" was not provided in the question, it can be either true or false.
Why are equity earnings usually greater than cash flow generated from the investment?
true
The internal rate of return method is like the NPV method a discounted cash flow technique True False?
true
Distinguish between fund flow statement and cash flow statement?
Cash book just shows the cash receipt and cash payment without distinguishing for which purpose cash is paying out while in cash flow statement difference is shown to determine that cash is coming or going out from which activity.
Which of the following is true about cash crops?
Which of these is a cash crop
When do you use a discounted cash flow and a future cash flow?
You use it when you want a more accurate valuation of an asset or business. A Discounted Cash Flow analysis (DCF) is performed to project the present value of future cash flows. A single, current year of operations is studied to determine the net operating revenue (Income minus recurring expenses). That year is the extrapolated forward for a holding period (5 years, 10 years). Each of those years are added together and then "discounted" (the opposite of compounding) at an arbitrary rate factoring in the risks associated with collection of future cash flows (inflation, true cost of equity and debt, risk of interruption in cash flow, the unknown) That calculation provides the net present value of the cash flow. If the discount rate you used yields a value greater than the initial equity, the deal is positive. If the discount rate is recalculated upward so that the net present value and the initial equity are equalized, (no longer being greater but matched) the resulting recalculation number is your internal rate of return. (IRR)
