The investing section is the only section that differs between the direct and indirect methods of preparing the statement of cash flows.
The cash flow direct method determines the change in cash receipts and payments reported in the Cash Flows from Operations section. The indirect method adds or subtracts net income earned in a period to calculate changes in asset and liability accounts to determine implied cash flows.
The indirect method adjusts income statement items directly in the cash flow statement based on operating cash inflows and outflows. This method provides a more logical representation of cash flow. Under the indirect method, operating cash flows are calculated on an accrual basis.
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Answer:
a. quantity demanded responds to a change in price.
Explanation:
The price elasticity of demand measures the sensitivity of the quantity demanded to changes in the price. Demand is inelastic if it does not respond much to price changes, and elastic if demand changes a lot when the price changes.
Answer: Economic profit covers implicit costs as well.
Explanation:
Economic profit and Accounting profits are two different things. Economic profit accounts for both explicit costs (operating costs) and implicit costs (opportunity costs) while Accounting profit accounts for only explicit costs.
When economic profit is zero therefore, it means that the firm is still covering the implicit costs so they will not be enticed to divest because their opportunity costs are being taken care.
It would therefore be wise to stay invested as this shows that this alternative is the best out of the other alternatives.
Answer:
A savings note is issued for a set period of time.
Explanation:
- The depositor can withdraw money from the account anytime. FALSE
The depositor can only withdraw his/her money when the set period of time expires.
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CDs earn less money than a traditional savings account. FALSE
CD's earn more money than a traditional savings account, and longer term CDs yield higher interest rates than shorter term CDs
- CDs are considered an aggressive investment. FALSE
CDs are considered very safe investments. The Federal Deposit Insurance Corporation (FDIC) guarantees CDs (and other bank transactions) for up to $250,000.
Answer:
Take out a loan from a bank don't borrow from family it could ruin your relationship with them
Explanation:
If you take a loan you might have to pay interest depends on the bank and the time you take to pay it back.
If you take a loan from a family member it depends on their financial situation if they have loads of money they might be patient but if they have not lots of money but still some money they might be annoyed on how long you take so my conclusion is take money from the bank.