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· Influence the businesses decisions concerning future. · The business has to create sure figures to be precise. · Alert bank to their possible problems in the future. · Plenty of searches are required. · Helps the business to plan ahead. · It is just a forecast. · Influence the businesses decisions concerning future. · The business has to create sure figures to be precise. · Alert bank to their possible problems in the future. · Plenty of searches are required. · Helps the business to plan ahead. · It is just a forecast.
Wiki User
∙ 15y ago
Advantages of the direct method in preparing the cash flow statement include providing a more detailed breakdown of cash receipts and payments, making it easier for users to understand the sources of cash. However, a disadvantage is that it requires more detailed information and can be more time-consuming to prepare compared to the indirect method.
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What impact will different depreciation methods have on a companys bottom line?
Different depreciation methods can impact a company's bottom line by affecting the amount of depreciation expense recognized each period. Straight-line method evenly allocates the cost over the asset's useful life, leading to consistent expenses. Accelerated methods like double declining balance result in higher depreciation expenses in the early years which can lower taxable income and increase cash flow. This can impact financial ratios and net income, ultimately affecting the bottom line.
What is the disadvantage of supply chain management?
One disadvantage of supply chain management is the increased complexity and coordination required among different entities involved in the supply chain, which can lead to higher costs and potential delays in the delivery of goods. Additionally, disruptions in the supply chain, such as natural disasters or political instability, can have ripple effects that impact the entire chain.
Is cash account real account?
Yes, a cash account is a real account in accounting. Real accounts represent tangible assets, and cash is considered a tangible asset because it is a physical form of currency.
What is present value analysis?
Present value analysis is a financial technique used to evaluate the value of future cash flows by discounting them back to their current value. It takes into account the time value of money, allowing for better decision-making by comparing the present value of costs and benefits. The goal is to determine whether an investment or project is worth pursuing based on its potential return.
Jayco purchased a machine for 6000 with the salvage value of 400 and a life of seven years the Straight-line method of depreciation was used At mid-year in year 4 Jayco sold the machine for 450?
The annual depreciation expense is (6000-400)/7 = $828.57. By year 4, accumulated depreciation would be 828.57 * 3.5 = $2899.99. Therefore, the book value at the time of sale is 6000 - 2899.99 = $3100. Since the machine was sold for $450, Jayco incurred a loss of $3100 - $450 = $2650.
What are the advantages and disadvantages of direct sales?
One advantage is that you pay with cash but you have to have the Exact amount
What are the advantages and disadvantages of cash crops?
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What are the Advantages and disadvantages of cash Credit?
you can only imagin the answers
Advantages and Disadvantages Cash Receipt system?
A receipt has many advantages towards it as it using the cash receipts provides more accurate reporting. The ability to use actual cash receipts and cash payments provides better information on a company's cash use. In some cases, a company may operate under the cash basis accounting method to ensure the cash information is accurate.
What is the difference between the direct method and indirect method?
The main difference between the direct method and the indirect method involves the cash flows from operating activities. Under the direct method, the cash flows from operating activities will include the amounts for lines such as cash from customers and cash paid to suppliers. In contrast, the indirect method will show net income followed by the adjustments needed to convert the total net income to the cash amount from operating activities.
What are the advantages and disadvantages of oxfam?
the advantages of this Oxfam cumpany is that they are raising cash in able to help the poor the disadvantages are that sometimes they don't have that much cash to help the people who need it the most because say that you gave them £15, £5 of that cash Oxfam keeps
What does one do to make a cash flow forecast?
Cash flow projection is the most powerful tool in cash management. It enables companies to see the cash flowing in and out of an organization. The direct method of cash flow forecasting is to use the direct cash receipts and disbursements method.
Advantages and disadvantages of mortgages?
Advantages - You can buy a house.Better cash flow.Disadvantages - Interest rates and be extremely high.
What are the advantages and disadvantages of a business accepting cash?
Advantage- gets cash. Disadvantage- you cannot say that you are a not-for-profit orginazation.
Methods of preparing statement of Cash flow?
Following are methods:1 - direct method2 - indirect method
Which section is affected by the decision to use either the direct method or the indirect method to prepare the statement of cash flows?
The Operating Activities portion of the Statement of Cash Flows is affected by whether the direct or indirect method is used.
In Cash flow statement what is direct method and indirect method?
Direct and indirect method of preparing cash flow statement is same with only one difference which is under indirect method 'Cash flow from operating activities' is prepared by adjusting the net profit amount for non cash items while 'Cash flow from financing activities' and 'Cash flow from investing activities' is prepared in same manner in both methods.
