0
Which section is affected by the decision to use either the direct method or the indirect method to prepare the statement of cash flows?
Wiki User
∙ 16y ago
The Operating Activities portion of the Statement of Cash Flows is affected by whether the direct or indirect method is used.
Wiki User
∙ 16y ago
Add your answer:
Earn +20 pts
Is a declaration of dividends reported on a statement of cash flows?
The answer is no since there is no actual cash outflow at declaration date. Journal Entry at Declaration Date: Dr. Dividends/Retained Earnings xxx Cr. Dividends Payable xxx If you will prepare the cash flow statement using the indirect method, try to imagine the "Dividends" account as if an expense/nominal account. Start first with the net income, assuming only dividends is your transaction during the month... Net Loss (Dividends) (XXX) Increase in liability (dividends payable) XXX The impact is zero 0 *Rule is increase in asset (-), increase in liability (+) for the indirect method of cash flow statement.
Why do you prepare a Bank Reconciliation Statement?
When the balances of our Cash Book and Pass Book do not agree, we prepare a Bank Reconciliation Statement. A Bank Reconciliation Statement is prepared periodically to reconcile the two balances and explain the reasons for the difference between them. It shows the items and the errors causing the difference as on a particular date. It is just a statement and not a part of the books of Accounts.
Which budget is NOT necessary to prepare the budgeted balance sheet?
budget statement of cash flow
Does the statement of cash flows classifies cash receipts and payments into four categories?
i have four years of balance sheet and income statement and now want to prepare cash flow statement from assets
Why was there a need to require companies to prepare a statement of cash flows?
because otherwise there would be no cash
Does the Statement of Comprehensive Income explain changes in Equity?
No, that is explained on the Statement of Changes in Owner's Equity. However, you do need to prepare a Statement of Comprehensive Income first in order to prepare the Statement of Changes.
When does an accounting prepare the financial statement?
monthly
How often do you prepare a bank reconciliation statement?
Monthly
1 What is the nature and scope of accounting?
What is management accounting ?Explain the nature and scope of management accounting management accounting is a part of accounting which is used for decision making lik in the organisation these decision makers prepare cash flow statement wich helps in forcasting the future profit of the organisation
How do you prepare comparative income statement?
Comparative income statement is same as normal income statement with little addition of that income statement as well from which comparison is required.
Why does the thesis statement go at the end of an introduction?
The thesis statement goes at the end of the introduction to provide a clear and concise preview of the main argument or purpose of the paper. Placing it at the end helps to build up to the main point and allows the reader to understand the context before being presented with the specific argument of the paper.
How is the Pakistan affected by the monsoons?
because the government of Pakistan is not prepare for monsoon
How is Pakistan affected by monsoons?
because the government of Pakistan is not prepare for monsoons.
How has SOX affected top officers in a public company?
the chief executive officer (CEO) and chief financial officer (CFO) of each publicly traded company prepare a statement to certify the "appropriateness of the financial statements and disclosures
Entry of judgment same as statement of decision?
No. A Statement of Decision is usually requested by the losing party after a bench (non-jury) trial before the judge alone. The Statement of Decision encompasses the ruling of the court, and addresses specific factual issues supporting the legal ruling. The Statement of Decision is important because it sets forth the required elements of each cause of action and basically sets the stage for any appeal. It is the court's Statement of Decision, but the court generally directs the prevailing party to prepare it. Generally, a proposed Judgment is submitted at the same time, but can be submitted later. Once the Statement of Decision is filed, all parties have a window of time to comment thereon or object thereto, and sometimes a hearing is held on the objections. Eventually, the court signs and issues its Statement of Decision, which the Judgment is then based upon. Once the Judgment is formally filed, either the clerk or often the prevailing party files a Notice of Entry of Judgment, which is then served on all parties. It is the Notice of Entry of Judgment which sets the date for subsequent court action, e.g., the parties have 30 days from Notice of Entry of Judgment in which to file an appeal.
How Pakistan affected by monsoon?
because the government of Pakistan is not prepare for monsoons.
How does one prepare a financial statement for a small business?
Many websites are available to help one prepare a financial statement for a small business. Such websites include the Small Business Assocation, BizFinance About, and Dummies.
