What are three concerns the financial manager should be aware of when analyzing a balance sheet, & income statement? Why do we need a statement of cash flows? How does a statement of cash flow differ from balance sheet and income statement?

What are three concerns the financial manager should be aware of when analyzing a balance sheet, & income statement? Why do we need a statement of cash flows? How does a statement of cash flow differ from balance sheet and income statement?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 12MC: Which of the following does nor assign a value to a business opportunity using time-value...

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Concept explainers

Contract Costing

Contract costing is about tracing particular costs related to a particular contract entered into with the customer. It is one of the forms of job order costing. It is useful in long-term contracts at the most. It is seen that substantial time is required for the completion of the contract which takes different accounting periods. Thus, it is very much helpful for recognizing the costs associated with it and accounting in their specific accounting periods.

Question

1] What are three concerns the financial manager should be aware of when analyzing a balance sheet, & income statement? Why do we need a statement of cash flows? How does a statement of cash flow differ from balance sheet and income statement?

2] Net Present Value Suppose a project has conventional cash flows and a positive NPV. What do you know about its payback? Its discounted payback? Its profitability index? Its IRR? Explain.

Approach to decide on the efficient procurement and investment of funds for the day-to-day operations of a business. Financial management aims at profit maximization, and it includes financing and capital budgeting.

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