Complete the Following: A.List the Three Primary Sources of Information Required to Prepare

question 51

Essay

Complete the following:
a.List the three primary sources of information required to prepare a statement of cash flows.
b.A company may report its accounts receivable at the gross amount less an allowance for bad debts.Contrast the direct and indirect methods of adjusting for accounts receivable reported at the gross amount.
c.Briefly discuss how cash flows arising from the purchase and sale of treasury shares are reported on the statement of cash flows.
d.Briefly discuss how other comprehensive income is reported on the statement of cash flows.
e.Briefly discuss how cash flows arising from investments in associates are reported on the statement of cash flows.
f.Briefly discuss the alternatives for reporting discontinued operations in the statement of cash flows.

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Definitions:

Risks

The potential for losing something of value or the chance of an adverse outcome.

Hurdle Rate

The minimum acceptable rate of return on an investment, used as a benchmark for deciding whether to pursue a project.

Internal Rate of Return

A calculation used to evaluate the profitability of potential investments.