Direct and Indirect Cash Flows Jayla West ACC291 February 21, 2016 Debra Peterson Direct and Indirect Cash Flows The direct method for creating a cash flow statement reports major classes of gross cash receipts and payments. Under IAS 7, dividends received may be reported under operating activities or under investing activities. If taxes paid are directly linked to operating activities, they are reported under operating activities; if the taxes are directly linked
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matters. It set out the procedures and steps to be followed in treating most of government transctions. (e) Finance/ Treasury Circulars: These are administration tools which are used to amend the provisions of financial Regulations,Public service rules and the introduction of new policy guildelines. The sections of the constitution quoted above authorize the receipts and payment of government, the allocation of revenue, the audit of public accounts and other financial matters. For ease of reference
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2. What is the basic structure of the BS and IS? 3. Why is cash flow more important than Accounting profits? 4. What three factors make cash flow not equal to net income? 5. What are OCF, CFFA, CFTC and CFTO? 6. What is the cash flow identity and how does it relate to the BS identity? 7. Why might a firm’s OCF not all be available for distribution to investors? Chapter 3 1. How do we compare cash flows that occur at different points in time? 2. What is meant by “compounding”
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Sheet Statement as of December 31,2009 | |Assets | |Cash $160,000 | |Marketable securities 210,000
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Accounting is part of every day life for those who pay bills as well. Honestly in the business community there has to be accounting in place to see where the business stands. What is GAAP? What is the purpose of GAAP? | | | GAAP are the rules that stop accountants from manipulating numbers and formulas to represent whatever it is they want the numbers to say rather than it being an actual reflection of the company's performance. these principles are put in place to prevent the over valuation
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(65-85)First withdrawal on 66th bdayInvesting w/ 8% return Wants to make equal payments on each bdayWhat amount must she deposit annually 1) Find amount at age 66 that must be accumulated to withdraw 90k for 20 years at 8%. Ordinary annuity (cash flow occurring at end of each year) 2) Find the annual deposit amount that will accumulate to the amount found above for 30 years at 8%. Ordinary annuity.Savingst=35 t=36 t=37 … t=65 PMT PMT
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Is| |Research System (FARS) Primer.] |Considerations |Makes One GAAP Preferable to |Located?]; [Case 12 Related: Are| | | |Another?; 30: When Can Analogies|Accounting Rules to Blame?] | | | |Be Used?; 31: What Are the 10 | | | | |Most Important Assumptions?;
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AIS Overview What can an AIS do? * Companies are able to track a variety of things. * The number of hours worked by employees all over the world. * The amount of sales taxes to be paid by one store. Types of AIS: Three categories of AIS: know the difference Manual systems * Generally used by small organizations. Entirely manual system would require: * Source document * Turnaround document- Company output sent to an external party, who often adds data to the document
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International Financial Reporting Standards. My thinking is that British Airways utilizes this method so that their financial reports can be understood and can be compared when considering international boundaries. U.S. GAAP is actually based more on specific rules whereas IFRS can be based on more broad principles. Another reason that British Airways may utilize IFRS is because the company has a little bit more control of what is actually included on their financial statements. U.S. GAAP is actually a little
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CHAPTER 4 DISCOUNTED CASH FLOW VALUATION Solutions to Questions and Problems 10. To find the future value with continuous compounding, we use the equation: FV = PVeRt a. b. c. d. FV = $1,000e.12(5) FV = $1,000e.10(3) FV = $1,000e.05(10) FV = $1,000e.07(8) = $1,822.12 = $1,349.86 = $1,648.72 = $1,750.67 23. We need to find the annuity payment in retirement. Our retirement savings ends at the same time the retirement withdrawals begin, so the PV of the retirement withdrawals will be the FV of
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