Financial Accounting Week 12 Course Project Assignment

Financial Accounting Week 12 Course Project - Assignment Example Only the operating sections deals with direct and indirect cash flows. To compare the income statement and the operations section, one needs to point out the difference in timing existing between the cash and income collections (Pratt, 2000). The comparison also highlights the timing difference between the cash payment and expenses. Large gap might show that the company is aggressive to recognize income, or the organization is spending a lot of money to maintain or buy assets, a fact that is not common in income statement. In direct method, the cash flows are listed in the operation part of cash flow statement. Cash flows arise due to transaction from client collection and cash payments made to employees, suppliers, and other. The section also records the cash payments for interest and income tax. The problem of using the direct method is that the organization fails to keep the information in the appropriate manner. For instance, organizations that use the accrual accounting lump the credit and cash sales together (Kimmel, Weygandt & Kieso, 2011). They make special provision in tracking their cash sales separately. Direct method is not commonly used in companies compared to indirect method. The direct method adds the cash flows inside and outside the business in every operations areas; financing, operations, and investment. The method is easy to understand but it does not help much, it only tells the customer what he already knows. The direct method is normally used in commonwealth countries. Conversely, in indirect methods, one needs to adjust the net income to change it to cash basis from accrual basis. The method is common and begins with the net profit and then changes accordingly the non-cash items balance, balance sheet items, and accounts receivables. The method is helpful to the customer when used together with the balance sheet and the income statement. They also need one to add again the non-cash expenses like amortization, depreciation, loss

Loss of my Grandfather Essay Example | Topics and Well Written Essays - 500 words

Loss of my Grandfather - Essay Example This discussion stresses that the death of the author's grandfather meant a disorganization in their family system. Since childhood, grandfather used to tell them that their extended family was an emotional unit that could be bonded by love and unity. In addition, grandfather had been advising the entire family against isolation and self-centeredness whereby people could do things for personal or individual gain. Soon after the death of grandfather, family meetings were no longer held as the unifying factor existed no more. For example, the author's uncle relocated, aunt transferred to her work place to the city and my family decided on staying on our grandfather’s farm where they live with our grandmother.   Ã‚  From this paper it is clear that grandfather was an elder in their local church, and for that matter, we used to go to his church. He built our spirituality in terms of getting involved in organized religion, engaging in various church ministries, going to church ev ery Sunday and even doing evangelism on weekends. Once he died, there was laziness on Sunday as they go to church whenever they feel like, they no longer participate in church ministries like they used to and they completely forgot about bible studies or even praying together as a family. The spirituality of their family was adversely affected to the extent that they no longer give tithes like they used to do as a family.