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.
Depreciation is a non-cash expense that is added back to net income in the operating activities section of the cash flow statement. Although it reduces taxable income, it does not involve an actual cash outflow during the period. By adding back depreciation, the cash flow statement reflects the true cash generated from operations, providing a clearer picture of a company's cash position. Thus, it helps reconcile net income to net cash provided by operating activities.
Yes it is correct as cash flow statement only deals in cash so non cash items should be eliminated from cash flow statement.
true
Cash crops could be ruined by a single disease
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.
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.
True
Since "the following" was not provided in the question, it can be either true or false.
true
true
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 these is a cash crop