Ash flows - Study guides, Revision notes & Summaries

Chapter 15 “How Well Am I Doing?”--Statement of Cash FlowsMultiple Choice Questions 16.Which of the following would be considered a “use” of cash for purposes of constructing a statement of cash flows?A)a decrease in accounts receivable.B)an increase in accounts payable.C)an increase in common stock.D)a decrease in bonds payable.Ans: D AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting LO: 1 Level: Medium 17.Which of the following would be considered a “sour...

Discounted Cash Flows Questions and Answers (2024/2025)(Verified Answers)

Accounting Principles II: Statement of Cash Flows Complete Study Guide Statement Sections Cash management is an important function for every business. Knowing what cash is expected to be received and what cash is required for payments is critical information in determining whether a company has excess cash for investment or will need additional cash to meet operating needs such as paying its employees or its suppliers. The financial statement that reports activity in cash and cash equival...

Discounted Cash Flows Questions and Answers Verified 100%

Discounted Cash Flows Exam Questions With Verified Solutions A DCF values a company based on: - answerThe present value of its cash flows and the present value of its terminal value. Walk me through a DCF - answerFirst, you project out the company's financials using assumptions for revenue growth, expenses and working capital. Then you get FCF for each year which you sum up and discount to a NPV based on your discount rate, usually the WACC. Then you determine the company's terminal val...

MHA 706 Mod 2 - The Balance Sheet and Statement of Cash FlowsWhat information does the Income Statement provide? Business operation and profitability What information does the Balance sheet contain? (2) - Assets of an organization - Liabilities and equity of the business, or how the assets are financed In terms of time, what is the difference between Income Statement and Balance Sheet? Income Statement looks at a PERIOD of time Balance Sheet looks at a GIVEN POINT in time. - "...

Discounted Cash Flows UPDATED Actual Exam Questions and CORRECT Answers A DCF values a company based on: - CORRECT ANSWER- The present value of its cash flows and the present value of its terminal value. Walk me through a DCF - CORRECT ANSWER- First, you project out the company's financials using assumptions for revenue growth, expenses and working capital. Then you get FCF for each year which you sum up and discount to a NPV based on your discount rate, usually the WACC. Then you...

C213 Chen Corporation had the following cash flows during 2012. The company uses the direc C213 Chen Corporation had the following cash flows during 2012. The company uses the direct method of preparing a statement of cash flows. Cash receipt from the issuance of stock 80000 Cash received from customers 40000 Dividends received on long-term investments 20000 Cash paid for wages 24000 Cash paid for insurance 2000 Cash paid for dividends 12000 Cash paid to purchase building 120000 ...

Intermediate Accounting -- Cash Flows in detailOperating Activities - correct answer Involve the cash effects of transactions that enter into the determination of net income. (Income statement items- Noncash charges, gains & losses, and change in current accounts) Investing Activities - correct answer Include making and collecting loans and acquiring and disposing of investments and PP&E. (LT asset items) Financing Activities - correct answer Include obtaining resources from owners and ...

Chapter 3—Income Flows versus Cash Flows: Understanding the Statement of Cash Flows MULTIPLE CHOICE 1. One rationale for the statement of cash flows is to a. ensure that the cash account balances at year-end. b. reconcile differences between net income and cash receipts and disbursements. c. calculate the company’s free cash flow. d. examine the cash effects of income from discontinued operations, extraordinary items and changes in accounting principles. 2. Which of the follo...