Differentiate between the accrual method and cash method?

Q: w are statement of cash flows used to evaluate a loan request for a prospective borro

A: While giving the loan the lender there is need of cash flow statement is required specially when…

Q: Distinguish between Cash flow versus Net Income?

A:

Q: Define cash and cash equivalents and explain how to report them.

A: Cash and cash equivalents are the current assets of a company which are available as cash or readily…

Q: How calculate accumulated cash flow, discounted cash flow and Accumulated discounted cash flow?

A: For calculating the accumulated cash flows we have to start from year 1 till the year when pay- back…

Q: What may be included under the heading of “cash”?

A: Current assets: Current assets are those assets owned by the company that can be convertible into…

Q: BRIEFLY A

A: fiscal policy, measures employed by governments to stabilize the economy, specifically by…

Q: What does the cash ratio help determine, and how is it calculated?

A: Cash ratio is a liquidity ratio that compares the assets of the company with its current…

Q: What is accrual accounting?

A: Accrual basis of accounting is an accounting method based on which accrual transaction are recorded…

Q: Explain the term Cash Equivalency?

A: It is an evaluation procedure by which the cost of comparable properties selling at various funding…

Q: Why is the accrual basis of accounting generally preferred over the cash basis?

A: Accrual accounting aims to record the impacts of accounting events in the period when such events…

Q: Distinguish between cash-basis net income and accrual-basis net income.

A:

Q: What is Repayment cash flow?

A: Cash flows play a significant role in companies. It helps companies to identify the liquidity…

Q: Define Cash-basis accounting.

A: Accounting: Accounting is a system, or a process of collecting and organizing economic transactions,…

Q: Explain Net Income versus Cash Flow?

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

Q: rual profit

A: Difference between Cash and Accrual Profit The cash basis and accrual basis of accounting are two…

Q: Why do net income and net cash flow differ?

A: Net income vs Net cash flow:

Q: Distinguish between the cash flow and Net Income?

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

Q: How is cash received in person independently verified?

A: Internal control: Internal control is a process which ensures continuous reliability of…

Q: Explain the Sharing of Cash Flow from Sale?

A: Operating cash flows (OCF) is a calculation of the cash generated from the ordinary operations of…

Q: What are the forms of money ?

A: Answer are as follows.

Q: What is a common cash flow transaction/Give an example?

A: Cash flows are mainly of three types:  1. Operating 2. Investing and 3. Financing  Cash flows from…

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: what total amount should be reported as cash and cash equivalents?

A: Cash and cash equivalents is an important part of assets of the business. It means assets which are…

Q: Distinguish between the gross and net methods of accounting for cash discounts.

A: Cash discount: A cash discount is a reduction in the amount that is to be paid by the credit…

Q: What is accural vs cash basis accounting. Explain with examples?

A: Cash Accounting: A form of accounting in which receipts are reported during the period in which they…

Q: Is Cash Flow more valuable than Accrual Income?

A: Under the accrual system of accounting, the transactions are recorded as and when they accrue…

Q: What is meant by 'cash inflow' and 'cash outflow'?

A: Cash flow statement: Cash flow statement is a statement that reports the cash inflow in operating,…

Q: What are the benefits of Relevant Cash-Flow Information?

A:

Q: What is the difference between a cash basis and an accrual basis measure of performance?

A: Cash Basis :- It is an Accounting Method where Revenue and Expense are identify at the time of…

Q: how do I determine how cash flow is generated?

A: What is a cash flow? Cash flow refers to the amount of cash or cash-equivalent a business receives…

Q: Can you give some explanation of why Amortization Expense is included as a source of cash in a cash…

A: In indirect  method  of cash flow statement  we add back amortization expense  to net income  in…

Q: What is the difference between cash expenses and non cash expenses?

A: Rent expense, salary expenses, insurance expense, depreciation expense, amortization expense, and…

Q: When initially recognizing the cash surrender value, what is the reason behind the allocation…

A: According to this principle of accounting, the revenues and expenses stated in the income statement…

Q: (a) Distinguish between Money measurement concept and matching concept.

A: Accounting concepts are those rules, regulations and guidelines which are used for completion of…

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: What does the statement of the cash flow report?

A: Statement of cash flow is one of the type of financial statements generally prepared by a company.

Q: fly discuss the following 1. What are advantage and disadvantages of cash method and accrual method?…

A: Cash basis of accounting: It recognizes the revenue and expenses when these are actually received…

Q: How is accrued interest calculated?

A: Accrued interest is the amount of interest that has been due but not received by the lender or…

Q: Briefly explain the concept of discounted-cash-flow analysis. What are the two common methods of…

A:

Q: attemntine determine the nount of cash and

A: Solution:   Calculation of cash balance $ 1 Commercial savings account 6,00,000 1 Commercial…

Q: Differentiate between net income and net cash flow?

A: Net Income is the difference between revenue and expenses recognized in an accounting period.Net…