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6 Cards in this Set
- Front
- Back
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Operating Activities
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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.
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Statement of cash flows
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A financial statement that reports the cash inflows and cash outflows for an accounting period, and classifies those cash flows as operating, investing, or financing activities.
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Financing Activities
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Transactions with a company's owners and creditors that include obtaining cash from issuing debt and repaying the amounts borrowed, and obtaining cash from or distributing cash to owners.
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Direct Method
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A calculation of the net cash provided (used) by operating activities that lists the major items of operating cash receipts, and then subtracts the major items of operating cash payments.
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Investing activities
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Transactions that include making and collecting notes receivable or purchasing and selling plant assets, or investments in other than cash equivalents and trading securities
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Indirect Method
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A calculation that reports net income and then adjust the net income amount by adding and subtracting items that are necessary to yield net cash provided (used) by operating activities.
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