The calculation of the payback period for an investment when net cash flow is even (equal) is:

Cost of investment/Annual net cash flow More test answers on https://studyhippo.com/accy-24-multiple-choice/

Which of the following should be deducted from net income in calculating net cash flow from operating activities using the indirect method?

gain on sale of land More test answers on https://studyhippo.com/acc-120/

Which of the following adjustments would be deducted in computing net cash flow from operating activities? A.Amortization expense. B.Amortization of bond discount. C.Depreciation expense. D.A net increase in the investment account when the equity method is used.

A net increase in the investment account when the equity method is used. More test answers on https://studyhippo.com/apc-331-ch-23-statement-of-cash-flows/

Which of the following should be a subtraction from net income in calculating net cash flow from operating activities using the indirect method? A) an increase to account receivable B) a decrease in accounts payable C) preferred dividends declared and paid D) a decrease in accounts receivable

an increase to account receivable More test answers on https://studyhippo.com/financial-accounting-comprehensive-problems-56315/

The calculation of annual net cash flow from a particular investment project should include all of the following except:

Depreciation expense. More test answers on https://studyhippo.com/accy-24-multiple-choice/

The net cash flow of a particular investment project:

Does not include depreciation. More test answers on https://studyhippo.com/accy-24-multiple-choice/

All of the following adjustments are added to net income in computing net cash flow from operating activities except A.amortization expense. B.a decrease in accounts receivable. C.an increase in accounts payable. D.an increase in prepaid expenses.

an increase in prepaid expenses. More test answers on https://studyhippo.com/apc-331-ch-23-statement-of-cash-flows/

All of the following adjustments would be deducted in determining net cash flow from operating activities except A.amortization of bond premium. B.decrease in deferred income tax liability. C.gain on sale of plant assets. D.increase in accrued liabilities

increase in accrued liabilities. More test answers on https://studyhippo.com/apc-331-ch-23-statement-of-cash-flows/

The reconciliation of net income to net cash flow from operating activities is reported under A.the direct method only. B.the indirect method only. C.both the direct method and the indirect method. D.neither the direct nor the indirect method.

both the direct method and the indirect method. More test answers on https://studyhippo.com/apc-331-ch-23-statement-of-cash-flows/

Net cash flows from operating activities is determined by eliminating A.earned revenues from net income. B.encurred expenses from net income. C.noncash expenses from net income. D.noncash revenues and noncash expenses from net income.

noncash revenues and noncash expenses from net income. More test answers on https://studyhippo.com/apc-331-ch-23-statement-of-cash-flows/

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Net Cash Flow Flashcards, test questions and answers

Discover flashcards, test exam answers, and assignments to help you learn more about Net Cash Flow and other subjects. Don’t miss the chance to use them for more effective college education. Use our database of questions and answers on Net Cash Flow and get quick solutions for your test.

What is Net Cash Flow?

Net Cash Flow is a term used to describe the amount of cash flowing in and out of a business. It is an important financial metric that measures the total amount of money available for use within a given period of time. It is calculated by subtracting all cash outflows (e.g., operating expenses, capital expenditures, taxes, interest payments) from all cash inflows (e.g., revenue, investments). Net Cash Flow can be used to analyze the financial performance of a business and assess its ability to generate profits over time.Net Cash Flow is an important indicator of a company’s overall health and performance since it provides insight into how much money is coming into and going out of the business. In other words, it reflects how much money the company has left over after accounting for all its expenses. Companies with positive net cash flows are more likely to be able to pay off debts and make investments in order to grow their businesses in the future. On the other hand, companies with negative net cash flows are often unable to make necessary investments or pay off debt obligations due to lack of funds available.Analyzing Net Cash Flow can help businesses identify potential areas for improvement in their operations or provide early warning signs when something may be amiss financially within the organization itself or its external environment such as customer demand or competitors entering into new markets or with new products/services. Additionally, analyzing net cash flow can help investors evaluate potential investments since companies with positive net cash flows may be better positioned from an investment perspective than those with negative net cash flows who rely heavily on debt financing or have unsustainable operating models due to underperformance or excessive overhead costs. Overall, monitoring Net Cash Flow helps businesses effectively manage their finances while providing investors valuable insight into a company’s current financial health as well as future prospects for growth and profitability.