Why is accounting income not the same as cash flow


Finance Assignment

o Explain how agency problems interfere with a manager's ability to achieve the primary goal of financial management.

o Explain what types of issues are related to the capital structure of a firm.

o Describe the primary advantages and disadvantages of each of the following types of business organizations: sole proprietorship, partnership, and corporation.

o How is liquidity both beneficial and harmful to a firm?

o What does the term "financial leverage" mean, and is it beneficial or harmful to a firm's stockholders?

o Explain the difference between accounting value and market value. Which is more important to the financial manager? Why?

o Why is accounting income not the same as cash flow?

o What is the difference between a marginal and an average tax rate?

o What are the components of operating cash flow?

o Why is interest paid not a component of operating cash flow?

Format your assignment according to the following formatting requirements:

o The answer should be typed, using Times New Roman font (size 12), double spaced, with one-inch margins on all sides.

o The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.

o Also include a reference page. The Citations and references must follow APA format. The reference page is not included in the required page length.

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Accounting Basics: Why is accounting income not the same as cash flow
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