The cash flow statement (CFS) measures how well a company manages its cash position, meaning how well the company generates cash to pay its debt obligations and fund its operating expenses. The cash flow statement complements the balance sheet and income statement and is a mandatory part of a company's financial reports since 1987.1
In this article, we'll show you how the CFS is structured, and how you can use it when analyzing a company.
KEY TAKEAWAYS
A cash flow statement is a financial statement that summarizes the amount of cash and cash equivalents entering and leaving a company.
The cash flow statement measures how well a company manages its cash position, meaning how well the company generates cash to pay its debt obligations and fund its operating expenses.
The cash flow statement complements the balance sheet and income statement and is a mandatory part of a company's financial reports since 1987.1
The main components of the cash flow statement are cash from operating activities, cash from investing activities, and cash from financing activities.
The two methods of calculating cash flow are the direct method and the indirect method.
To determine whether accounts payable are complete, an auditor performs a test to verify that all merchandise received is recorded. The population of documents for this test consists of all receiving reports.
<h3>What are receiving reports?</h3>
Receiving reposts is a kind of tool that is used to list, document or note all the transaction details of the businesses. It is generally updated and maintained by those employees of the staff who are responsible for receiving or accepting the delivery of goods.
Thus, an auditor runs a test to ensure that every item received is recorded in order to evaluate whether accounts payable are complete. The receiving reports are the population of documents for this test.
Learn more about receiving reports here:
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Answer:
Implementation lag
Explanation:
there are four types of lags associated with fiscal policy
Administrative lag is the time it takes to enact the needed policies. Operational lag is the time it takes for the policy to be enacted to the time the effects are felt in the economy
Recognition lag is the amount of time it takes for authorities to recognise a problem in the economy that needs fiscal policy intervention.
Implementation lag is the amount of time it takes for fiscal policy decisions to be implemented.
Answer:
1.A representative quantity from a probability distribution arrived at by multiplying each outcome times the associated probability and summing up the products.
2.The relative convertibility of short-term assets to cash.
3.Assets that are assumed to be long term in nature.
4. Computer terminals in retail stores that may be used for inventory control or other purposes.
5. Assets that are converted to cash within the normal operating cycle of the firm.
6.Financing provided by sellers or suppliers in the normal course of business.
7.Equal monthly production used to smooth out production schedules and employ manpower and equipment more efficiently.
Explanation:
