Chapter 12: Accounting for Cash Flows

Chapter 12:  Accounting for Cash Flows
Financial Accounting by John Wilde

7 cards   |   Total Attempts: 182
  

Cards In This Set

Front Back
Cash flow on total assets
Ratio of operating cash flows to average total assets; not sensitive to income recognition and measurement' partly reflects earnings quality
Direct method
[resentation of net cahs from operating activities for the statement of cash flows that lsits major operating cash receipts less major operating cash payments.
Financing activities
Transactions with owners and creditors that include obtaining cash from issuing debt, repaying amoutns borrwoed, and obtaining cash from or distributing cash to owners.
Indirect method
Presentation that reports net income and then adjustst it by adding and subtracting items to yiled net cash from operating activities on the statement of cash flows
Investing activities
Transactions that involve purchasing and selling of longterm assets, includes making and collecting notes receivanle and investments in other than cash equivalents.
Operating activities
Activities that involve the production or purchase of merchandise and the sale of goods or services to customers, including expenditures related to administering the business
Statement of cash flows
A financial statement taht lists cash inflows (receipt) and cash outflows (payment) during aperido; arranged by operating, investing, and financing.