Write memo to tom including the following explaining the

Assignment Help Accounting Basics

Reference no: EM13452558

Your friend, Tom Smith is the owner-president of a consulting company. He recently completed his third year of business and received the annual financial statements from his accountants. He finds the income statement and balance sheet informative, but does not understand the statement of cash flows. He said the section of operating activities is really confusing. He says this first section consists of a lot of additions and subtractions which did not make any sense.

Write memo to Tom including the following:

Explaining the purpose of the statement of cash flows.

Explaining the form and content of the statement of cash flows.

The advantages and disadvantages of the direct and indirect methods of preparing this financial statement.

Which method is preferred by the FASB?

Which method is more popular to use?

Reference no: EM13452558

Questions Cloud

Emily company has sales on account and sales for cash : emily company has sales on account and sales for cash. specifically 60 of its sales are on account and 40 are for cash.

Most of the students in bha 3002 aspire to become the : many students in bha 3002 aspire to become healthcare leaders. they aspire to become directors cnos cios cfos ceos or

Explain dangers of a high debt to gdp ratio and the growing : assume that the country is in a period of high unemployment interest rates are at almost zero inflation is about 2 per

What is meant by the term modeling in healthcare leadership : question 1many students in bha 3002 aspire to become healthcare leaders. they aspire to become directors cnos cios cfos

Write memo to tom including the following explaining the : your friend tom smith is the owner-president of a consulting company. he recently completed his third year of business

Ask any hospital ceo to make a list of hisher biggest : ask any hospital ceo to make a list of hisher biggest challenges in leading a hospital and somewhere high on that list

Explain the three stages of cellular respiration where they : describe the three stages of cellular respiration where they occur in the cell the substrates and reactants for each

What lessons can you take away from nch to enhance your own : readhttpwww.greatplacetowork.comnewscultureascompetitiveadvantagenorthwestcommunityhospital06-21-06.pdf northwest

Create the document using microsoft excel which illustrates : suppose that you are in charge of designing a product campaign for a new shampoo. this campaign will include among

User Account

All Pages