Why would users want to see cash flows broken out

Assignment Help Accounting Basics

Reference no: EM13320356

1. Why would users want to see cash flows broken out into three parts (operating, investing, and financing)? What's the purpose of this structure?
2. Companies often use Accounts Receivable to finance sales and Accounts Payable to finance short-term bills: so why aren't these listed as Financing Activities?
3. Depreciation is a method for allocating the cost of a long-term asset over the time of its use: so why is Depreciation Expense listed as a Cash Inflow?
4. Earnings Quality is a widely-used ratio in many industries: what does it mean? When is it more/less important? Why would investors/creditors care?

Reference no: EM13320356

Questions Cloud

Graph the original function and the scaled function : Graph the original function and the scaled function and also graph the signal

Find capacitance of a paraell-plate capacitor : find capacitance of a paraell-plate capacitor with area 34_cm^2, seperation distance 0.72_mm an dielectric with constant 2.5. use 8.85 x 10^-12 C^2/N*m^2

The mayor signed a budget for the street : The city council approved and the mayor signed a budget for the street and Highway Fund that provided for estimated revenues from the state government in the amount of $1,070,000 and appropriations of $1,065,000, record the budget and post to the ..

The subject is technology and the world of advertising : The subject is Technology and the world of advertising

Why would users want to see cash flows broken out : Why would users want to see cash flows broken out into three parts (operating, investing, and financing)? What's the purpose of this structure?

Find resitance of silver wire : the resistivity of silver at 20 degrees C is 1.59 x 10^-8 ohms*m and it temp coefficient is 0.0061/degree C. Find resitance of silver wire at 43 degree C

Information concerning operations : Lucas Company uses the weighted-average method in its process costing system. The company adds materials at the beginning of the process in the Forming Department, which is the first of two stages in its production process.

How much heat is added to the system : 150 g of ice at -10.5 oC is raised to the melting point and then raised to 76.0 oC. How much heat is added to the system

Declaration of dividends by the board of directors : Somento Forest Inc. has 10,000 shares of 6%, $100 par value, cumulative preferred stock and 100,000 shares of $1 par value common stock outstanding at December 31, 2014. What is the annual dividend on the preferred stock?

User Account

All Pages