Answer:
Cashflow statement gives the true state of affairs of a business with respect to cash and cash equivalent. Whereas a company may report good profit, it may be running an unhealthy business because of its poor management of cash resources. As a result, such a business may run into troubles.
Cash from operating Activities is a healthy way of evaluating the core operations of the business, to make good investment judgment around the profit reported.
Net Income = $380,000
Add Depreciation (non- cash expense) = $70,000
Deduct Increase in Accounts receivables (non-cash income) = $30,000
Cash from operations = $420,000.
Answer:
By only certifying travel documents that are legal, proper, and correct.
Explanation:
A person must frequently discover the complexity of his or her financial situation.
Answer:
No net effect on the accounting equation.
Explanation:
Given that,
On January 1, Products sold to a customer on account = $30,000
On January 10, Cash collected from a customer = $30,000
Accounting equation is as follows:
Assets = Liabilities + Stockholder's equity
On January 10,
The cash of $30,000 is received from the customer which increases the assets by $30,000 and reduces the accounts receivable by $30,000 which is also a part of assets. Therefore, there is no change or impact on the accounting equation.
Answer:
The correct answer is "Journal entries passed in the journal".
Explanation:
- Posting throughout ledger has always been decided to make from transactions throughout the journal passed across.
- This becomes important to keep in mind that almost every entrance in something like a journal would also have to be commented on among all transactions debited or otherwise given credit throughout the entry to something like the journal.
