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zvonat [6]
3 years ago
10

The principal purpose of a statement of cash flows is to measure the profitability of a business that maintains its accounting r

ecords on the cash basis. True or False True False
Business
2 answers:
Alisiya [41]3 years ago
6 0

Answer: False

Explanation: The principal purpose of the statement of cash flows is to show where a firm's cash is being generated (inflow), and where its cash is being spent (outflow), over a specific period of time. These inflows and outflows are furthermore classed into operating, investing, and financing activities and are used by the investment community to determine the ability of a firm to generate cash, and then how the generated cash are spent. The statement of cash flows is essential in analyzing the liquidity and long-term solvency (ability to pay off debts) of a firm.

Alexus [3.1K]3 years ago
5 0

Answer:

False

Explanation:

The principal purpose of a statement of cash flows is to measure the profitability of a business that maintains its accounting records on the cash basis.

This is False because cash flows are also made for businesses that accounting records on the accrual basis rather than cash basis.

The cash flow is computed both by Direct and Indirect methods.

In indirect method of Cash flow Net income is computed using accrual income which recognizes revenues when earned and expenses when incurred.

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Lyrx [107]

Answer:

am sorry plz write your question in English

8 0
2 years ago
Which of the following is a dimension of national culture?
BartSMP [9]

Answer:

(B) Uncertainty avoidance.

Explanation:

Uncertainty avoidance is one of the dimensions of national culture.

It deals with with degree at which members of a society feel comfortable and tolerate uncertainty and the unknown.

People in cultures with high uncertainty avoidance try to reduce the occurrence by implementing rules and regulations while those in cultures of low uncertainty avoidance feel more comfortable and have no need to implement many rules.

4 0
3 years ago
The following provides data for an economy in a certain year. Consumption expenditures $50 Imports $40 Government purchases of g
wlad13 [49]

Answer:

$150

Explanation:

The formula to compute the GDP is as follows

GDP = Consumption + Investment + Government purchase + Net exports

where,

Consumption = Consumption of expenditure = $50

Investment = Business fixed investment + change in inventory + construction of new homes & apartments

= $30 + $10 + $30

= $70

The change in inventory is

= Ending inventory - beginning inventory

= $20 - $10

= $10

Government purchase = Government purchases of goods and services = $20

Net exports

= Exports - imports

= $50 - $40

= $10

So the value of GDP is

= $50 + $70 + $20 + $10

= $150

5 0
3 years ago
Part U16 is used by Mcvean Corporation to make one of its products. A total of 14,000 units of this part are produced and used e
Rus_ich [418]

Answer:

$13400

Explanation:

<u>Workings</u>

Unit of of production

Direct materials - 3.10

Direct labor - 7.70

Variable manufacturing overhead - 8.2

Supervisor's salary - 3.6

Depreciation - 2.00

Allocated general overhead 7.20

Total cost - 31.8

Cost per year = 31.8*14000

445,200

Cost of buying = 25.50

Allocated general overhead - 7.20

Total cost =32.7

Annual cost 32.7*14000 = 457800

Annual opportunity cost of internal production = 26,000

The overall advantage of buying = 26000 - (457800-445200)

= 13,400

6 0
3 years ago
On January 1, the first day of the fiscal year, a company issues a $5,000,000, 6%, 10-year bond that pays semiannual interest of
irga5000 [103]

Answer:

Explanation:

The journal entries are shown below:

On Jan 1 - Cash A/c Dr $5,000,000

                        To Bonds Payable A/c $5,000,000,

(Being bond is issued)

On June 30 - Interest expense A/c Dr $150,000

                           To Cash A/c                                     $150,000

(Being interest paid for cash)

On December 31,  Bonds Payable A/c Dr $5,000,000

                                   To Cash A/c                            $5,000,000

(Being payment of principal is recorded on the maturity date)

8 0
3 years ago
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