Please solve all these questions
Dear Student,
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18. Dividend received by financing companies will be shown under "operating activities" in cashflow statement. Because for financing company operating activities comprises of accepting deposite and forwarding loans.
19. Charging of depreciation on furniture will leads to no flow of cash, depreciation is included as an expense in the income statement but is a non-cash expense - i.e. no cash moves during the year due to depreciation - only a decrease in the carrying amount of the asset. Depreciation reduces net income on the income statement, but it does not reduce the Cash account on the balance sheet.
20. (a)
(b) Limitations of financial analysis are as follows:
Regards,
Note:
Please ask separate question in separate threads.
18. Dividend received by financing companies will be shown under "operating activities" in cashflow statement. Because for financing company operating activities comprises of accepting deposite and forwarding loans.
19. Charging of depreciation on furniture will leads to no flow of cash, depreciation is included as an expense in the income statement but is a non-cash expense - i.e. no cash moves during the year due to depreciation - only a decrease in the carrying amount of the asset. Depreciation reduces net income on the income statement, but it does not reduce the Cash account on the balance sheet.
20. (a)
(b) Limitations of financial analysis are as follows:
Regards,