Question.3422 - 1. How does net cash flow differ from net income and why is that difference relevant to financial decision making?2. With regard to tax purposes, which type of depreciation methods do organizations prefer and why?
Answer Below:
Net xxxx flow xxx net xxxxxx are xxxx crucial xxxxxxx in xxx financial xxxxxxxx however xxxx have xxxxxxxxx measure xxxxxxx for x companys xxxxxxxxx performance xx this xxxxxxxx understanding xxx difference xxxxxxx the xxx could xxxxxxxxxxxxx impact xxxxxxxxx decision-making xxxx Nikolaev xxxxxxxxx the xxx cash xxxx refers xx the xxxxx cash xxxxxx that xx flowing xx and xxx of xxx company xxxx any xxxxxxxx period xx the xxxxx hand x net xxxxxx has xxxx the xxxxxx that x company xxx make xxx expenses xxxxx and xxxxx have xxxx deducted xxxx the xxxxx revenue x nay xxxx The xxxxxxxxxxxx of xxxx net xxxx flow xxx net xxxxxx varies xxxxx net xxxxxx measures xxx companys xxxxxxxxxxxxx whereas xxx cash xxxx provides x clear xxxxxxx of xxx companys xxxxxxxxx and xxx ability xx meet xxxxxxxxxx obligations xxxx it xxxxx to xxx purposes xxxxxxxxxxxxx often xxxxxx certain xxxxxxxxxxxx methods xxxxx they xxxxx impact xxx tax xxxxxxxxxxx and xxxx flow xx varied xxxx Hence xxxxx have xxxx two xxxxx primary xxxxxxxxxxxx methods xxxxxxxx considered xxx tax xxxxxxxx such xx straight-line xxxxxxxxxxxx and xxxxxxxxxxx depreciation xxxxxxx Mazurina xx al xx nexus xxxx this xxxxxxxxxxxxx mainly xxxxxx the xxxxxxxxxxx depreciation xxxxxx since xxxx method xxxxxx for xxxxxx depreciation xxxxxxxx in xxx early xxxxx of xx assets xxxx maintaining xxxx flow xx well xx matching xxxxxxxx with xxxxxxxx They xxxx prefer xxxx since xxxx offer xxxxxxxxx tax xxxxxx and xxxxxx cash xxxx by xxxxxxxxxx the xxxxxxxxxxxx expenses xx the xxxxx years xxxxx companies xxxxx reduce xxxxxxx income xxx reinvest xxx savings xxxx their xxxxxxxxxx or xxxxx investments xxxxxxxxxx Ball x Nikolaev x V xx earnings xxx cash xxxxx as xxxxxxxxxx of xxxxxx cash xxxxx Journal xx Accounting xxx Economics x nay x Ecer x Cash xxxx based xxxxxxxxx performance xx Borsa xxxxxxx tourism xxxxxxxxx by xxxxxxxxxxxxxx integrated xxxxx Journal xx multidisciplinary xxxxxxxx tourism x Mazurina x Y xxxxxxxxxxx Y x Neopulo x L xxxxxxxxx T x Studying xxx impact xx the xxxxxxxxxxxx policy xx the xxxxxxxxxxx of xxxxxxxxxx potential xx industrial xxxxxxxxxxx Entrepreneurship xxx Sustainability xxxxxxMore Articles From Management
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