Accounting profits and cash flows are:Group of answer choicesgenerally the same since accounting profits reflect when the cash flows are received.generally not the same since accrual accounting allows for revenue recognition separate from the receipt of cash flows.generally not the same because cash inflows occur before revenue recognition.generally the same since they reflect current laws and accounting standards.

Accrual Accounting:Revenue Recognition For a sale of goods to be recognized as revenue, while:a. The amount of revenue and the costs incurred or to be incurred should be reliably measurable.b. It is possible that the economic benefits (in most cases, cash) from the sale will flow to the seller

Which of the following could cause accrual-based profits to be higher than net cash flows from operating activities?Group of answer choicesDepreciation expense has been included in the accrual-based profit.Not all of the cash has been received for sales made in the accounting period.Some expenses for the period have not been paid.None of the options is true.

In the statement of cash flows, net cash flows from operating activities plus net cash flows from investing activities plus net cash flows from financing activities for the period equal:Group of answer choicesthe cash balance at the beginning of the period.the cash balance at the end of the period.operating profit.total net increase or decrease in cash held for the period.

The statement of cash flows separates cash inflows and outflows into the following classifications.Multiple choice question.Operations, Investments and FinancialGross Profit, Operating Income and Net IncomeCash Collected, Cash Disbursed and Change in CashOperating, Investing and Financing

The Statement of cash flows helps management, investors, creditors and other interested parties evaluate the following about the entity (choose all that apply):Group of answer choicesCash investing and financing transactions for the periodExplains the difference between profit and net cash provided (used) by operating activitiesAbility to pay share dividends and meet obligationsAbility to generate future cash flows