Question

64. Which component of the statement of cash flow measures cash generated from revenues and costs?

64. Which component of the statement of cash flow measures cash generated from revenues and costs?

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer:

Statement of cash flow has three major components viz.

(i). Cash flow from operating activities

(ii) Cash flow from investing activities

(iii) Cash flow from financing activities

Out of these, the component which measures cash generated from revenues and costs is 'Cash flow from operating activities'.

Operating cash flow measures cash which is generated from operations (revenue and costs).

Hence:

'Cash flow from operating activities' is the component of the statement of cash flow which measures cash generated from revenues and costs.

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
Which of the following statements regarding cash flow is correct? Multiple Choice Cash flow measures changes...
Which of the following statements regarding cash flow is correct? Multiple Choice Cash flow measures changes in the firm's cash account. After-tax cash flow is usually identical to accounting profits when accrual accounting is used for financial statement purposes. In evaluating capital budgeting decisions, cash flows should be valued on a pre-tax basis for consistency's sake. Incremental cash flows should include opportunity costs but ignore sunk costs. Cash flow should be recognized only when it has accrued according to GAAP...
The income statement provides accrual based earnings and the cash flow statement provides cash flows from...
The income statement provides accrual based earnings and the cash flow statement provides cash flows from operations. Which of these measures of firm performance is more important to investors, auditors, and fraud investigators? Is it possible that one of these measures can provide clues about manipulation of the other? What are some red flags that could signal manipulation of income from operations or cash flows from operating activities?  
Which of the following is a section of the statement of cash flows? a. Cash flow...
Which of the following is a section of the statement of cash flows? a. Cash flow from noncash activities b. Cash budget c. Current assets d. Cash flow from operating activities
You can determine a company’s cash situation by analyzing its cash flow statement. The cash flow...
You can determine a company’s cash situation by analyzing its cash flow statement. The cash flow statement also helps determine whether the company (1) is generating enough cash from its operations to make new investments and pay dividends or (2) will need to generate cash by issuing new debt or selling its assets. A firm has $20 million in revenues. Does that mean it has generated a cash flow of $20 million? Yes No The statement of cash flows reports...
Using the chart of cash revenues and costs read and explain the results of the cash...
Using the chart of cash revenues and costs read and explain the results of the cash flow analysis. Describe incremental cash flow. Explain sunk costs, opportunity costs, strategic value and inflation effects. Then provide your decision on whether to make the purchase or not.
43. Which financial statement shows the results of. business operations - that is the revenues (sales)...
43. Which financial statement shows the results of. business operations - that is the revenues (sales) generated and the expenses incurred - during a specifies time period? A Income statement B balance sheet C statement of retained earnings D statement of cash flows
In a cash flow statement, why are noncash costs added to post-tax income in order to...
In a cash flow statement, why are noncash costs added to post-tax income in order to calculate the net cash flow? a) Noncash costs are only considered before taxes in the cash flow statement. b)This accounts for the fact that noncash costs are tax deductible, but that no cash payment actually occurs. c) Cash flow statements only consider noncash costs after taxes have been calculated. d)This accounts for the fact that businesses write a check for noncash costs every year.
how to find excess cash in cash flow from operating activities in cash flow statement?
how to find excess cash in cash flow from operating activities in cash flow statement?
When preparing the Statement of Cash Flow using the indirect method for the current year, which...
When preparing the Statement of Cash Flow using the indirect method for the current year, which of the following statements would describe the proper presentation of a increase in the Common Stock account of $150,000 and an increase in the Paid-In Capital in Excess Par Common Stock of $25,000 for which cash of $175,000 was received for the issuance of additional common stock. Add the $175,000 as Cash received from the issuance of common stock in the Cash flow from...
During the last year, Len Corp. generated $1,170.00 million in cash flow from operating activities and...
During the last year, Len Corp. generated $1,170.00 million in cash flow from operating activities and had negative cash flow generated from investing activities (-640.00 million). At the end of the first year, Len Corp. had $200 million in cash on its balance sheet, and the firm had $280 million in cash at the end of the second year. What was the firm’s cash flow (CF) due to financing activities in the second year? $337.50 million $562.50 million $-225.00 million...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT