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25 Cards in this Set
- Front
- Back
- 3rd side (hint)
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Types of cash flow activities |
Operating, investing, financing |
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Operating activities |
Transactions that affect net income, current assets, current liabilities |
Day to day profit making activities |
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Investing activities |
Transactions that affect long term assets |
Related to buying and selling investments |
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Financing activities |
Transactions that affect long term liabilities and stockholders equity |
Related to generating and repaying capital |
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Payment of salaries |
Operating |
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Purchase of land |
Investing |
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Issuance of stock |
Financing |
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Repayment of long term notes |
Financing |
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Payment of rent |
Operating |
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Collection of sales revenue |
Operating |
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Conversion of bonds payable to common stock |
Non cash financing and investing |
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Loss on the sale of equipment |
Operating |
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Purchase of another company's stock |
Investing |
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Purchase of merchandise inventory |
Operating |
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Proceeds from sale of a building |
Investing |
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Payment of dividends |
Financing |
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Collection of interest income |
Operating |
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Purchase of treasury stock |
Financing |
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Payment of interest on long term debt |
Operating |
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Depreciation expense |
Operating, add |
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Gain on sale of equipment |
Operating, subtract |
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If a current asset account increases... |
Subtract change from net income. |
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If current asset account decreases... |
Add changes to net income |
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If a current liability account decreases... |
Subtract change from net income |
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If current liability account increases... |
Add change to net income. |
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