Questions from Managerial Accounting

Q: What are the major categories of business activities reported on the statement

What are the major categories of business activities reported on the statement of cash flows? Define each of these activities.

Q: What are the typical cash inflows from operating activities? What are

What are the typical cash inflows from operating activities? What are the typical cash outflows from operating activities?

Q: Describe the types of items used to compute cash flows from operating

Describe the types of items used to compute cash flows from operating activities under the two alternative methods of reporting

Q: Under the indirect method, depreciation expense is added to net income

Under the indirect method, depreciation expense is added to net income to report cash flows from operating activities. Does depreciation cause an inflow of cash?

Q: Odessa, Inc., manufactures one model of computer desk. The

Odessa, Inc., manufactures one model of computer desk. The following data are available regarding units shipped and total shipping costs Required: 1. Prepare a scattergraph of Odessa’...

Q: Explain why cash outflows during the period for purchases and salaries are

Explain why cash outflows during the period for purchases and salaries are not specifically reported on a statement of cash flows prepared using the indirect method.

Q: Explain why a $50,000 increase in inventory during the

Explain why a $50,000 increase in inventory during the year must be included in computing cash flows from operating activities under both the direct and indirect methods.

Q: What is the general goal of trend analysis?

What is the general goal of trend analysis?

Q: Explain whether the following situations, taken independently, would be favorable

Explain whether the following situations, taken independently, would be favorable or unfavorable: (a) increase in gross profit percentage, (b) decrease in inventory turnover ratio, (c) increase in...

Q: How is a year-over-year percentage calculated?

How is a year-over-year percentage calculated?