classifying flows
DESCRIPTION
Cash Flows, Investing & Financing. Other Terms. Review Potpourri. Cash Flows, Operating. Classifying Flows. $ 100. $ 100. $ 100. $ 100. $ 100. $ 200. $ 200. $ 200. $ 200. $ 200. $ 300. $ 300. $ 300. $ 300. $ 300. $ 400. $ 400. $ 400. $ 400. $ 400. $ 500. $ 500. $ 500. - PowerPoint PPT PresentationTRANSCRIPT
Classifying Flows
Other Terms
Review Potpourri
$100 $100 $100
$200 $200 $200
$300 $300 $300
$400 $400 $400
$500
Cash Flows, Investing & Financing
$400
$100
$200
$300
$500
Cash Flows, Operating
$100
$200
$300
$400
$500 $500 $500
Classifying Flows - $100
The section of the SCF in which amortization expense is added back.
What is Operating Activities?
Back to Board
Classifying Flows - $200
The section in which a carpentry company would report its purchase of table saws.
What is Investing Activities?
Back to Board
Classifying Flows - $300
The section in which the Acme Co. would report the $5,000,000 received from issuing common shares.
What is Financing Activities?
Back to Board
Classifying Flows - $400
The section in which a company would report an increase in accounts receivable.
What is Operating Activities?
Back to Board
Classifying Flows - $500
The section in which a company would report an increase in accrued liabilities.
What is Operating Activities?
Back to Board
Cash Flows, Operating - $100
Method of presenting the Operating Activities section of the cash flow statement that adjusts net income to compute cash flows from operating activities.
What is the Indirect Method?
Back to Board
Cash Flows, Operating - $200
The reason amortization is added back into net income on the SCF.
What is “because amortization expense does not affect cash but was subtracted when computing net income”?
Back to Board
Cash Flows, Operating - $300
The direction of adjustment made in an indirect method SCF for an increase in accounts receivable.
What is subtracted from Net Income? (Because the cash collected from customers is less than accrual basis revenues)
Back to Board
Cash Flows, Operating - $400
The direction of adjustment made in an indirect method SCF for a decrease in accounts payable.
What is subtracted from Net Income? (Because cash payments are greater than amounts obtained on account)
Back to Board
Cash Flows, Operating - $500
The direction of adjustment made in an indirect method SCF for a decrease in inventory.
What is added to Net Income? (Because less was spent on inventory than was expensed in COGS)
Back to Board
Cash Flows, I & F - $100
The types of accounts relevant to the Cash Flows from Investing section.
What are “accounts related to long-lived tangible and intangible assets” (as well as other investments)?
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Cash Flows, I & F - $200
How proceeds from the sale of equipment are reported on the SCF.
What is added as a cash flow from investing activity?
Back to Board
Cash Flows, I & F - $300
DAILY DOUBLE!!!
Cash Flows, I & F - $400
The section under which an increase in contributed capital due to a share issuance is recorded on the SCF.
What is Financing?
Back to Board
Cash Flows, I & F - $500
The section under which a $10,000 increase in long-term debt is recorded on the SCF.
What is Cash Flows from Financing?
Back to Board
Other Terms - $100
Net Cash Flow from Operating Activities divided by Cash Paid for PP&E.
What is the Capital Acquisitions Ratio?
Back to Board
Other Terms - $200
Net Cash Flow from Operating Activities divided by Net Income.
What is the Quality of Income Ratio?
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Other Terms - $300
A cash flow ratio used to measure the portion of income that was generated in cash.
What is the Quality of Income Ratio?
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Other Terms - $400
Cash inflows and outflows directly related to components of net income.
What are Cash Flows from Operating Activities?
Back to Board
Other Terms - $500
Growth in sales and seasonality can affect this ratio and are not usually cause for concern.
What is the Quality of Income ratio?
Back to Board
Review Potpourri - $100
Back to Board
The directional effect of a share buyback on EPS.
What is Increase?
Review Potpourri - $200
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The term that describes issuances of common shares when some have previously been issued.
What is Seasoned New Issue?
Review Potpourri - $300
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The accounts affected when $10,000 of amortization is recorded against a company’s patent.
What are Amortization Expense and Patent?
Review Potpourri - $400
Back to Board
Net Sales Revenue divided by Average Net Fixed Assets.
What is the Fixed Asset Turnover Ratio?
Review Potpourri - $500
Back to Board
When the company performs the services promised to a customer.
What is when Revenues are earned?
Daily Double Specify Your Wager!
Cash Flows, I & F ---
How cash dividends are reported on the SCF (Added or subtracted, and section it is recorded under).
Back to Board
What is subtracted under the Cash Flows from Financing Activities section?