Question

1. Name two users of information from a statement of cash flows. 2. Explain why one...

1. Name two users of information from a statement of cash flows.

2. Explain why one of the users you named would need the information.

3. Name three rights that common shareholders have

4. Name three characteristics that are unique to a corporation.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

1. Potential lenders and accounting personal are two users of information from a statement of cash flows.

2. Accounting personal need the information because they want to know the ability of the company to cover cash expenses.

3. Three rights that common shareholders have:-

a) Right to transfer the ownership in company

b) Right for entitlement of dividends.

c) Voting power on major affairs of the company.

4. Three characteristics that are unique to a corporation:-

a) They have limited liability.

b) They are professionally managed.

c) They are owned by shareholders.

Hi mate,
I would be grateful to you if you can provide a thumbs up and write one beautiful comment. It will improve my rating and let me continue my journey here.
In case of doubt, please comment. I will consider myself fortunate if I can help you.
All the best for your bright future.
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
What types of useful information is provided by the statement of cash flows? The statement of...
What types of useful information is provided by the statement of cash flows? The statement of cash flows separates cash receipts and payments into three classifications. What are these three classifications and how do they differ? Of the three classifications of cash receipts and payments, which one should always be positive and why?
In preparing a statement of cash flows, cash flows from operating activities a.   are always equal...
In preparing a statement of cash flows, cash flows from operating activities a.   are always equal to accrual accounting income. b.   are calculated as the difference between revenues and expenses. c.   can be calculated by appropriately adding to or deducting from net income those items in the income statement that do not affect cash. d.   can be calculated by appropriately adding to or deducting from net income those items in the income statement that do affect cash. Explain in one...
1. On an indirect method statement of cash flows, the purchase of machinery in exchange for...
1. On an indirect method statement of cash flows, the purchase of machinery in exchange for common shares is: Select one: a. ignored b. reflected in the investing activities section c. shown in the schedule of noncash investing and financing activities which accompanies the statement of cash flows d. reflected in the operating activities section Question 2. The statement of cash flows is designed to fulfill all of the following purposes except: Select one: a. to determine the company's ability...
1.) Why is the statement of cash flows a useful document? 2.) Define the following terms...
1.) Why is the statement of cash flows a useful document? 2.) Define the following terms as they relate to the statement of cash flows: cash flows: cash, operating activities, investing activities, and financing activities. 3.) How does the direct method differ from the indirect method?
Explain why cash flows rather than profits from the Income Statement are used in the net...
Explain why cash flows rather than profits from the Income Statement are used in the net present value method of investment appraisal.
The following information from the Statement of Cash Flows of Dome Ltd. as of December 31,...
The following information from the Statement of Cash Flows of Dome Ltd. as of December 31, 2020 is available: Net cash used by investing activities..........      (65,000) Net cash provided by financing activities 20,000 Net increase in cash...................................         11,000 Cash, January 1, 2020...............................         33,000 Cash, December 31, 2020........................      $ 44,000 Purchase of land.........................................      (27,000) Purchase of buildings and equipment.....      (52,000) Sale of equipment……… 14,000 Payment of cash dividend.........................      (25,000) Sale of bonds............................................         45,000 The...
Name and discuss at least 3 cash flows that you would likely see in the Investing...
Name and discuss at least 3 cash flows that you would likely see in the Investing and/or Financing activities sections of your Cash Flow Statement. DO NOT use only Investing or only financing cash flows—at least one should be present in each area of cash flows for a Travel Agency
Why is the Statement of Cash Flows so important? Why do outside parties rely on it...
Why is the Statement of Cash Flows so important? Why do outside parties rely on it so much? On the cash flow statement cash inflows are shown as __________ while cash outflows are shown as _________. What do you need to prepare a cash flow statement? Describe the three cash flow categories, give the general account rule for what types of accounts go in each category, and provide example line items for both cash inflows and cash outflows. Operating Activities...
Accounting Discussion From your perspective which of the 3 statement of cash flows categories is of...
Accounting Discussion From your perspective which of the 3 statement of cash flows categories is of most significance? Explain why.
1.How are purchases and sales reported on the statement of cash flows? 2.“Depreciation is an integral...
1.How are purchases and sales reported on the statement of cash flows? 2.“Depreciation is an integral part of cash flows statement”. Explain what it means. 3.A company used cash for both operating and investing activities, but had a positive cash flow from financing activities. What does this cash flow pattern suggest about this company?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT