Answered: Describe the cash flow approach?

Business

Finance

Describe the cash flow approach?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 25GI

See similar textbooks

Related questions

Q: What is alternative cash flow measures?

A: Cash flow refers to the amount of cash that moves in and out of the business because of its…

Q: Describe the discounted cash flow techniques?

A: Following are the discounted cash flow techniques: Net present value (NPV) is the contrast between…

Q: Distinguish between Cash flow versus Net Income?

Q: What is the purpose of the statement of cash flows?

A: The internal cash flows the business encounters is not accounted for in the income statement or the…

Q: What are the benefits of The Cash-Flow Statement?

A: Statement of Cash Flows: Statement of cash flows is a financial statement that reports the sources…

Q: Understand the usefulness of the statement of cash flows.

A: Statement of cash flows: Statement of cash flow is a financial statement that shows the cash and…

Q: FIND: STATEMENT OF CASH FLOW

A: A cash flow statement showcases the transactions that have taken place in a business that involved…

Q: Define cash flow hedges.

A: Derivatives: Derivative is a product whose value is derived from underlying assets called base.…

Q: What is the statement of cash flows, and what are some questions it answers?

A: A cash flow statement is the summary of cash flow which provides the details of the cash and cash…

Q: Explain the objective of the cash flow statement and why it is required.

A: A cash flow statement is a basic financial report that depicts a company's cash inflows (cash…

Q: How to calculate a cash flow ?

A: Cash flow means the movement of money or cash and its equivalents. It is the amount of cash…

Q: What is cash flow

A: Cash flow means movement of Cash and cash equivalents in and out of the business. Cash flows…

Q: What is the importance of statement of cash flows?

A: Cash flow is the flow of money that flows in and out of a business. It can be expressed in terms of…

Q: What are free cash flows?

A: Companies always estimate cash flows to know the financial conditions of the company because it is a…

Q: What is net cash flow?

A: Answer: Net cash flow is nothing but the difference between a company’s total cash inflows and total…

Q: How can we determine the net cash flow from operations?

Q: List the [ive patterns of cash flow?

A: The Movement of cash in or from the organization plays an important role in various decisions making…

Q: Explain the usefulness of the statement of cash flows

A: Statement of cash flows: Statement of cash flow is a financial statement that shows the cash and…

Q: What is free cash flow, and how is it calculated?

A: Free cash flow:Free cash flow is defined as an evaluation of financial performance of a company. It…

Q: how to create a cash flow statement in a easiest and fastest way?

A: Cash flow statement is the statement which shows inflow and outflow of cash and cash equivalent…

Q: Distinguish between the cash flow and Net Income?

A: Income statement: The financial statement which reports revenues and expenses from business…

Q: What are the objectives related to the statement of cash flows?

A: The answer :

Q: What types of questions does the statement of cash flows answer?

A: Statement of Cash flow tells us about the cash transactions of a firm for a given time period. It…

Q: How can we separate cash flows from operating cash flow?

Q: Of what use is the statement of cash flows?

Q: Describe the process of computing the equivalent cash value?

A: Equivalent cash value is the value that has equal worth as much as cash has. Generally, bank…

Q: Calculate cash flows.

A: Net operating cash flows are the amount which is generated by the company in cash after charging for…

Q: WHAT DOES THE STATEMENT OF CASH FLOWS SHOW US?

A: Since cash play a vital role in making businees successful. The flow of cash need to be understood…

Q: Explain the purpose of the cash flow statement

A: The cash flow statement is an essential part of the financial statements of the organization. It is…

Q: What is meant by ‘Cash Flows’ ?

A: Cash Flow Statement: Cash Flow Statement is a fundamental financial statement that renders valuable…

Q: umespect Lu the sldlement of cash flows

A: Answer: Option 2

Q: Define Accumulated cash-flow sign test

A: Accumulated cash flow sign test is applied in a series of cash flows over the period of time. This…

Q: What are the characteristics of a strong statement of cashflows?

A: The Cash Flow Statement also referred to as statement of cash flows or funds flow statement. It is…

Q: Discuss special problems in preparing a statement of cash flows.

A: Statement of cash flows: This statement reports all the cash transactions which are responsible for…

Q: Give an example of the Cash-Flow Approach?

A: A cash flow hedge is defined as the transaction done to offset the risks from the variability of the…

Q: Differentiate between cash inflows and cash outflows?

A: Cash flows refer to the movements of cash into and out of a business, commonly categorized as…

Q: Explain the classification of cash flows.

A: Cash flows means cash coming in the business or cash outgoing from the business. It can be cash…

Q: The operating cash flow is?

A: Cash Flow Statement:- It is a statement prepared to know the liquidity available with the entity.…

Q: How do we measure and compare various cash flows?

A: Cash flows are described as those movements of cash which result from the various activities of the…

Q: What is The Cash-Flow Statement? Give an example?

A: A statement that helps in providing detailed information regarding the cash inflow as well as the…

Q: Why must we convert cash flows to a common basis?

A: In creating a cash flow statements, it is important to translate accumulated net profits to a cash…

Q: Define the term Equivalent Cash Value?

A: Cash: Cash is the money that is readily available in the form of currency. Since cash can be easily…

Q: What are the benefits to preparing cash flow statement?

A: Benefits of preparing cash flow statement 1. Determination of changes in cash and cash equivalents…

Q: what is analytical tool in evaluating cash flows?

A: Cash flows are cash inflows and cash outflows of the business for the particular period of time.…

Q: Define the term cash flows.

A: The cash flow statement is prepared to record the cash flow from various activities of the business.

Question

Describe the cash flow approach?

Expert Solution

I. Meaning

Cash flow referred as the net value of cash and cash equivalent transferred as in and out of business. The cash flows indicate flows of cash which a company receives and reinvest. The cash flows are easy to examine depending on inflow and outflow of cash. It helps to analyze the cost as well as the benefit during the time.

Step by step

Solved in 2 steps

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.