- Study guides, Class notes & Summaries

Why is a cash flow statement important? correct answers - Shows how much actual cash a business has generated. What does a cash flow statement list? correct answers Inflows and Outflows: 1. Operating - INFLOWS = Collections from customers & Other cash flows from operating activities. - OUTFLOWS = Paying employees, paying suppliers, Payment of interest, Other cash outflows from operating activities. 2. Financing - INFLOWS = Owner investments & Receipts from long-term borrowing. - OU...

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3 pages

Written in 2024/2025

Grade A+

ProPerfomer

CURRENT RATIO correct answers For every one dollar of current liabilities the business has x amount of current assets. The current ratio is useful decision making by telling you the ability of a business to meet its short term obligation measures the liquidity ratio is usually to 1 -1 facing difficulties in meeting their obligations 4:1 under utilised QUICK RATIO correct answers Instead of current assets measuring liquid assets (cash). For every one dollar of current liabilities th...

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4 pages

Written in 2024/2025

Grade A+

ProPerfomer

Accy 130 – Exam || A+ Graded Solutions!! Accy130 Exam || 100% Correct Answers; Scored A+ Accy130 Inspera Quiz (Lecture Week 3/4) With 100% Correct Answers; A+ Graded. Accy130 Mcqs || Questions With 100% Solved Answers!! Accy130 - Final Test || A+ Guaranteed!!

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22 items

ProPerfomer

why do people (inside a business) use accounting information? correct answers -to help determine/manage costs -set selling prices -to control operations of the business why do people (outside a business) use accounting information? correct answers -to help make investment and credit decisions private-enterprise (for-profit entity) correct answers individuals who own businesses that produce and sell services and/or goods for a profit what are the three categories for private enterprise...

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5 pages

Written in 2024/2025

Grade A+

ProPerfomer

Private enterprise and For-Profit entities correct answers •businesses in most countries operate in an economic system called private enterprise (for-profit entities). • In this system, individuals own businesses that produce and sell services and/or goods for a profit. • These businesses generally fall into three categories, Service, Merchandising and Manufacturing. Service businesses correct answers • Service businesses perform services or activities that benefit individuals or...

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19 pages

Written in 2024/2025

Grade A+

ProPerfomer

Relevance correct answers Useful info to make and evaluate decisions Faithful Representation correct answers information that is complete, neutral, and free from error Comparability correct answers FS should be comparable Timeliness correct answers Provided in a timely manner so that its capable of being Verifiability correct answers Verified through source document or other source Understandability correct answers Understand the information that is being conveyed through these st...

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5 pages

Written in 2024/2025

Grade A+

ProPerfomer

Factors that are causing business to change? correct answers - Information explosion through Internet therefore business managers have more skills to create competitive advantage. - Technological advances mean that things can be done more efficiently and share information faster for example flights and schedules have been able to increase amount of people that travel - more competitive. - Globalisation creates a larger more diverse marketplace but more challenges working with cultures and la...

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17 pages

Written in 2024/2025

Grade A+

ProPerfomer

Operating Activities correct answers Primary activities of: - buying, selling and delivering goods for sale - providing services Working Capital correct answers A business' current assets minus its current liabilities. Represents the net resources that managers have to work with (manage) in the business' day-to-day operations. Business' use working capital because they want to keep an appropriate amount on hand. Cash correct answers Money on hand, deposits in cheque and s...

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10 pages

Written in 2024/2025

Grade A+

ProPerfomer

What is a financial statement? correct answers Summarise and communicate financial information to external users. The accounting system produces 4 major financial statement. - The income statement - The statement of changes in owners equity - The balance sheet - The cash flow statement Income statement correct answers •Summarises the results of a business operating activities for a specific time period •Shows profit for that period •Includes revenues, expenses and net income St...

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7 pages

Written in 2024/2025

Grade A+

ProPerfomer

Chapter 9- cash flow statement correct answers -balance sheet and the cash flow statement are related -internal and external users need the cash flow statement why the cash flow statement is important correct answers -shows the changes in cash during an accounting period -it lists the cash inflows (transactions) and outflows from operating, investing and financing activities during the period -primarily provides information about a business ability to remain solvent and to grow understa...

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4 pages

Written in 2024/2025

Grade A+

ProPerfomer