All categories

2 years ago

Which of the following statements regarding the statement of cash flows is incorrect?

Business

1 answer:

hoa [83]2 years ago

3 0

Answer:

B. Due to its format and level of detail, most individuals have difficulty comprehending the information reported in the statement of cash flows.

Explanation:

A financial statement is a written report that quantitatively describes a firm's financial health. Under the financial statements is a cash-flow statement, which is used to record the cash inflow and cash equivalents leaving a business firm.

Cash flow statement, also known as the statement of cash flows, contains financial information about operating, financial and investing activities.

The following statements regarding the statement of cash flows are correct;

I. The statement of cash flows presents a detailed summary of all the cash inflows and outflows, or the sources and uses of cash during the period.

II. The income statement, the statement of stockholders’ equity, and the balance sheet each present some information about the cash flows of an enterprise during a period.

III. The statement of cash flows reports the following:

(1) the cash effects of operations during a period,

(2) investing transactions,

(3) financing transactions, and

(4) the net increase or decrease in cash during the period.

You might be interested in

Bill smith economic influences

dusya [7]

I don't really know of Bill Smith but I know Adam

Smith's best - known ideas formed the basis of economic theory , including the invisible hand theory ( the idea that free - markets coordinate themselves ) , the division of labor ( the idea that people should specialize in specific tasks ) , and the measurement of economic activity ( Gross Domestic Product ) .

Please follow me and Mark as brainlest.

Thanks :-)

7 0

3 years ago

Product B has revenue of $39,500, variable cost of goods sold of $25,500, variable selling expenses of $16,500, and fixed costs

Kay [80]

Answer:

We should discontinue Product B

Explanation:

We should check if Product B generates a contribution or not:

We subtract from the sales revenues the variable cost:

revenue 39,500

variable cost of goods sold (25,500)

variable selling expenses (16,500)

Contribution (2,500)

As the contribution is negative, we should discontinue Product B as is less expensevely to stop production than continue.

3 0

3 years ago

Should Tangshan Mining company accept a new project if its maximum payback is 3.5 years and its initial after tax cost is $5,00

Firlakuza [10]

Answer:

Yes, Tangshan Mining company should accept the project.

Explanation:

Payback period is the number of years it takes for a project's expected cash inflows to recover the initial investment amount.

Tangshan company's required payback period = 3.5 years

Year CF Net CF

0 -5,000,000 -5,000,000

1 1,800,000 -3,200,000

2 1,900,000 -1,300,000

3 700,000 -600,000

4 1,800,000 1,200,000

Payback period = last year with -net CF +(absolute net CF that year /total CF the following year)

Payback period = 3 + (600,000 / 1,800,000)

=3 + 0.33

= 3.33 years

Since 3.33 years is lower than the required payback period of 3.5 years, Tangshan Mining company should ACCEPT the new project; it will take less years to fully recover the initial amount investment.

5 0

2 years ago

Yum! Brands customizes their marketing approach to better fit certain markets. However, their overall marketing and branding mes

Irina-Kira [14]

Answer:

Global Marketing

Explanation:

Based on this scenario, it seems that Yum! Brands is currently in the Global Marketing stage. In this, they decide on the best way to market their product/services in such a way that will maximize their reach as well as their profits Globally. These decisions are made so that their marketing is efficient in various geographic locations without having to specifically target different marketing campaigns in each location. All of which is created and controlled from within the company's home market.

8 0

2 years ago

Read 2 more answers

Building and deploying flexible systems can allow for ___________.

musickatia [10]

Solutions for unexpected business environmental changes

4 0

3 years ago