Tag cashflows

Since accounting is based on the accrual concept, accounting earnings often differ significantly from the cash that actually flows into and out of the business. ACTUAL Cashflows (Not Cashflow From Operations) Adjustment Why it is needed (+) Non-cash expenses (Depreciation, Amortization) These…

Situation Which Is Greater? Reason Credit sales Earnings > Cash flow Revenue before cash Increase in Receivables Earnings > Cash flow Cash not collected Revenue Recognition from Prior Advances Earnings > Cash flow No new cash Situation Which Is Greater?…