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What section in the statement of cash flows for reporting the receipt of cash dividenDs from investments in securities is what?
Operating Activities ;)
Which financial statement is primarily concerned with reporting the profit-related activities of a business?
Statement of Cash Flows
What is the sequence for preparing financial statements?
1st: Income statement 2nd:Owner's equity statement 3rd:Balance sheet 4th:Statement of cash flows
Cash flow Vs funds flow?
Cash flows and fund flows
What does time dependence of cash flows mean?
In any project, Cash flows of year two is dependent with cash flows of year one so it is called time dependency of cash flows. For example: if public reacted positively high in the market for a new product that introduced by a company, resulting high initial cash flows, then cash flows in future periods are also likely to be high. Therefore, it is time dependency of cash flows. S0193585
The appropriate section in the statement of cash flows for reporting the purchase of equipment for cash is?
Investing activities
The appropriate section in the statement of cash flows for reporting the cash payment of wages is?
Operating Activities
What section in the statement of cash flows for reporting the receipt of cash dividenDs from investments in securities is what?
Operating Activities ;)
Why are companies required to prepare a statement of cash flows and what is its significance in financial reporting?
Companies are required to prepare a statement of cash flows to show how cash is generated and used in their operations. This statement is significant in financial reporting because it provides insights into a company's liquidity, operating activities, and ability to meet financial obligations.
Which financial statement is primarily concerned with reporting the profit-related activities of a business?
Statement of Cash Flows
What is role of cash Flow Statement?
Cash flow statement means the cash inflow and outflow from business due to operating, financing and investing activities.
What are the major advantages of the indirect method of reporting cash flows from operating activities?
the advantage is that it focuses on the differences between net income and net cash flows from operating activities. Meaning, it makes it more useful to relate the statement of cash flows and the income statement and balance sheet. Also it is less costly to change net income to net cash flow from operating activities.
What is the sequence for preparing financial statements?
1st: Income statement 2nd:Owner's equity statement 3rd:Balance sheet 4th:Statement of cash flows
What is the difference between net cash flows and operating cash flows?
Net cash flow means net of cash inflow and outflows while operating cash flows means cash flows generated by operating activities of business.
What is free cash flows?
Cash resources available for the owners of a firm are known as free cash flows.
Cash flow Vs funds flow?
Cash flows and fund flows
What is the meaning of non recurring cash flow in cashflow statement?
Non-recurring cash flows means cash flows which are of capital expenditure nature or for long term cash flows.
