An entity may report significant accounting losses over a number of successive years and still report positive

Question:

An entity may report significant accounting losses over a number of successive years and still report positive net cash flows from operating activities over the same period. How can this happen?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Applying International Financial Reporting Standards

ISBN: 978-0730302124

3rd edition

Authors: Keith Alfredson, Ken Leo, Ruth Picker, Paul Pacter, Jennie Radford Victoria Wise

See More Books

Question Posted: Apr 30, 2016 01:07 PM

See More Questions

An entity may report significant profits over a number of successive years and still experience negative net cash flows from its operating activities. How can this happen?
From the following, calculate the net cash flows from operating activities (use the direct method): Sales Cost of Goods Sold Salary Expense Insurance Expense Other Expenses (all cash) $9,000 4,400...
From the following, calculate the net cash flows from operating activities (use the direct method): Sales ................ 9,500 Cost of Goods Sold .......... 4,000 Salaries Expense ........... 1,220...
Explain how the structure of the cash flow statement represents another subsection of the accounting equation.
At December 31, 2012, before any year-end adjustments, the Accounts Receivable balance of Stenners Electronics is $180,000. The Allowance for Doubtful Accounts has an $11,600 credit balance. Stenners...
Single rate versus departmental rates Bravo Steel Company supplies structural steel products to the construction industry. Its plant has three production depart ments: cutting, grinding, and...
If you were Peggy Richards, how would you advise Tom Delaney to proceed?
On June 1, 2011, bids were submitted for a construction project to build a new municipal building and fire station. The lowest bid was $5,130,000, submitted by the Shannon Construction Company....
Suppose the Japanese stock market bubble peaked at 49,200 in 1989. Two and a half years later it had fallen to 24,700. What was the percentage decline? (Negative answer should be indicated with a...
Create a Data Table to depict the future value when you vary the interest rate and the investment amount. Use the following assumptions: Interest Rates: Investment Amounts: -15.0% $ -13.0% $ -11.0% $...
The statement of cash flows is said to be of assistance in evaluating the financial strength of an entity, yet the statement can exclude significant non-cash transactions that can materially affect...
Why are retrospective adjustments made to earnings per share ratios?
Target costing: a. Requires specification of desired level of profit. b. Targets specific costs for reduction. c. Is used primarily with products that are al ready in production. d. Leads to profit...
1. What is a forward contract? 2. Why do you need fx swap ? 3. If the rate is usd to cad, then you multiple by the rate. If converting USD to CAD. If the rate is CAD to USD, then you have to divide...
1. Watch the video on Taylorism. Why do you think Frederick Taylor's ideas were important at that particular point in history, the early 1900s? Explain. 2. How were the Hawthorne studies a major...
what extent do elite networks shape policy and governance, and how transparent are these networks to public scrutiny ? Explain
What strategies do you employ to mediate conflicts within a team to ensure that disagreements are resolved constructively and synergistically?
What goal(s) do you think the communication was intended to achieve? What type of promotional communication is it and why? What do you believe to be the advertising theme or central idea of the...
Draw the electron dot formula and the structural formula for an acetylene molecule, C 2 H 2 .
Nike manufactures shoes and sportswear. How has the Internet changed the way this company communicates with its suppliers and retail customers?
Name the type of opinion indicated by each of the following situations: a. There is a material uncertainty. b. There was a change in accounting principle. c. There is no material scope limitation or...
What are the roles of management and the auditor in the preparation and integrity of the financial statements?
What is the purpose of the SECs integrated disclosure system for financial reporting?
Required : a- outline the statement of comperhensive income for the year ended 30 november 2021 b- outline the statment of financial position as at 30 November The Trial Balance of Alim Enterprise at...
International business and environment The MIR requires teams to gather current, or the most recently available, data on the markets people, economy, government, and technological status from online...
Consider the following stream of cash flows. The interest rate is 10%. 0 1 2 3 4 5 6 7 100 100 100 200 0 300 300 300 a) What is the value at time 0 of the cash flow stream? b) What is the value of...

An entity may report significant accounting losses over a number of successive years and still report positive

Question:

Step by Step Answer:

This situation is typical of an entity that has large noncash charges to the stateme...View the full answer

Applying International Financial Reporting Standards

Students also viewed these Accounting questions