User Account

All Pages

What is the reporting objective of statement of cash flows

Assignment Help Managerial Accounting
Reference no: EM132802261

Question - Amy and Lester are the owners of The Hardware Store on Main Street in a large town. Without consulting Amy, Lester hires an accountant for a formal Balance Sheet, Income Statement, and Statement of Cash Flows for The Hardware Store. Amy understands the importance of having a Balance Sheet and Income Statement, but she does not understand the importance of having a Statement of Cash Flows. Amy reasons that examining the Cash account in General Ledger is sufficient to know where the cash came from and where it was spent.

Presume you are the accountant that was hired by Lester. Answer one (1) of the following questions to explain to Amy the purpose of the Statement of Cash flows: Please make your initial post your response to Amy.

What is the reporting objective of the Statement of Cash Flows?

There are two methods used to prepare the statement. Name each method along with the uses and limitations between the methods.

What steps should you use to prepare the statement?

What are the components of the statement? Are they placed in a particular order? If so, why?

Identify and explain the adjustment from net income to calculate cash flows from operating activities. In your answer, include the method and describe one component used in the calculation.

Reference no: EM132802261

Questions Cloud

What instance would a manager prefer variable costing : What instance would a manager prefer variable costing over absorption costing? As a manager of Pride Company which basis for pricing decision would you use
Identify least two healthcare related managerial issues : Identify least two Healthcare related managerial issues related to your job role. Provide the proposed solutions and the policies for addressing the healthcare
Result of continuous emission : -Which of the chemicals observed during the flame tests are a result of continuous emission and which is a result of a line emission
Difference between diversity and affirmative action : Do you think there is much difference between diversity and affirmative action as public policies? If you do, what is that difference?
What is the reporting objective of statement of cash flows : What is the reporting objective of the Statement of Cash Flows? What are the components of the statement? Are they placed in a particular order? If so, why
Describe protections for whistleblowers : Describe protections for whistleblowers. Why are they important? How do the protections impact the Act? List any consequences of the violations.
What job analysis method or methods would you recommend : Before hiring a social media director, a job analysis should be conducted. What job analysis method or methods would you recommend to identify the most.
Draw up the profit and loss appropriation account : The company's equity share capital consisted of 5,00,000 equity shares of Rs. 10 each. Draw up the profit and loss appropriation account
What is the new pressure : A rigid container is charged with a gas to a pressure of 760 mmHg at 20.0°C and tightly sealed. If the temperature of the gas increases by 40.0°C what is the ne

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Manage budgets and financial plans

Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.

  Prepare a retained earnings statement

Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.

  Prepare a master budget for the three-month period

Prepare a master budget for the three-month period.

  Construct the companys direct labor budget

Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

  Evaluate the predetermined overhead rate

Evaluate the Predetermined Overhead Rate

  Determine the company''s bid

Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.

  Compute the pool rates for the different activities

Complete the schedule to compute the pool rates for the different activities.

  Prepare Company financial statements

Prepare Company financial statements

  Prepare an analysis of terracycles

This individual assignment is based on the TerraCycle Inc.

  Discuss the ethical issues

Discuss the ethical issues

  Political resources in emerging markets

Calculate the GDP in Income Approach  and Expenditure Approach

  Management accounting - ehsan electronics company

A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd