Cash generated by the regular operations of a business; usually computed as net income plus or minus the effects of other current assets and current liabilities on cash flows, plus noncash expenses deducted in arriving at net income, minus noncash revenues included, less certain gains and plus any losses that are included in the total proceeds received from sale of fixed assets is given below
Explanation:
- Cash flows from operating activities show the net amount of cash received or disbursed during a given period for items that normally appear on the income statement. You can calculate these cash flows using either the direct or indirect method.
- The direct method deducts from cash sales only those operating expenses that consumed cash. This method converts each item on the income statement directly to a cash basis.
- Alternatively, the indirect method starts with accrual basis net income and indirectly adjusts net income for items that affected reported net income but did not involve cash.
- The Statement of Financial Accounting Standards No. 95 encourages use of the direct method but permits use of the indirect method.
- Whenever given a choice between the indirect and direct methods in similar situations, accountants choose the indirect method almost exclusively. The American Institute of Certified Public Accountants reports that approximately 98% of all companies choose the indirect method of cash flows.
- The direct method converts each item on the income statement to a cash basis.
- The indirect method adjusts net income (rather than adjusting individual items in the income statement) for (1) changes in current assets (other than cash) and current liabilities, and (2) items that were included in net income but did not affect cash.
- The most common example of an operating expense that does not affect cash is depreciation expense.
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Option D</u></h3>
Every penny spent on a good or service must end up as someone's income so the total value of production in an economy equal the total value of income
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Explanation:</u></h3>
The circular flow model describes how cash flows through society. Cash moves from yielders to workers as payments and runs back to yielders as cash for products. Since all the value created must refer to someone in the class of a request on the value, the national product is equivalent to national income.
Each action in an economy comprises a buyer and a seller. Households spend cash for acquiring goods and services exhibited. Firms make a production settlement. Households are employing units which incorporate output created in the business firms
<em>Find the given attachments for the complete solution</em>
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The answer is 4. <span>The website ends in .gov.
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Domain names such as .com, .net etc can be purchased by anyone and does not signify credibility of a website.
However, some web addresses such as .edu and .gov are reserved for educational and government institutions only.
This can clearly tell you about the reliability and the authority of the website.
Other options mentioned above such as (c) sign or a website selling law services, would not really be indicators of reliability since anyone can forge these.
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Answer:
Banks create money with a system called credit creation. With the help of credit creation, banks can lend a lot more money than the deposits that it holds. When banks lend this money to agriculture, industries, small businesses, and service providers, they are actually helping the economy grow exponentially.
Explanation:
