Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
19 Cards in this Set
- Front
- Back
|
Do you always subtract out Bad Debt expense from Gen'l & Admin Expenses?
|
Yes
|
|
|
What's the formula for cash paid for inventory?
|
COGS + inc in inv + decrease in a/p
|
|
|
What's the formula for cash received from customers?
|
Sales + Beg A/R - Ending A/R. sometimes take out write offs
|
|
|
What are some examples of non-cash investing & financing transactions?
|
1. Converting debt to equity
2. Acquiring assets by assuming directly related liab, such as a purchase of a bldg by incurring a mortgage. 3. Obtaining an asset by entering into a capital lease 4. Exchanging non-cash assets or liab for other non-cash assets or liab. |
|
|
Should non-cash investing & financing activities be reported in disclosures?
|
Yes
|
|
|
Explain reporting cash flow's from operating activities under the direct method?
|
Under this method, enterprises are encouraged to report major classes of gross cash receipts & gross cash pymts & their arithmetic sum-the net cash flow from operating activities.
At a minimum the following classes of operating cash receipts & pymts should be reported separately for: cash from cust, int & dividends received, other oper cash receipts, cash paid to employees & other suppliers of goods or svcs including ins & ppd's, int paid, inc taxes paid & other oper cash pymts |
|
|
What 4 types of info does the statement of CF's provide to outsiders?
|
1. Entities ability to generate positive future net cash flows.
2. Entities ability to meet its obligations, it's ability to pay dividends, and its needs for external financing. 3. The reasons for diff's btw NI & associated cash receipts & pymts. 4. The effects on an enterprises financial position of both it's cash & non-cash investing & financing transactions during the period. |
|
|
What type of disclosure is req'd of investing & financing transactions.
|
Related disclosures should report the effects of investing & financing transactions that affect an enterprises financial position, but do not directly affect cash flows during the period.
|
|
|
What are cash equivalents?
|
ST, highly liquid investments that are both 1) readily convertible into known amts of cash, 2) so near their maturity that they present insignificant risk of changes in value because of changes in int rates. Maturity less than 3 months!!
|
|
|
What are 4 things that are removed from NI under the indirect method?
|
1) All deferrals of past operating cash receipts & pymts, such as changes during the period in inventory & deferred income.
2) All accruals of expected operating cash receipts & pymts, such as changes during the period in receivables & payables. 3) Items whose cash affects are investing CF's, such as depr & G & L's on sales of PPE & discontinued operations. 4) Items whose cash affects are financing cash flows, such as G&L's on extinguishment of debt. |
|
|
Should f/s report amount of cash flow per share?
|
No
|
|
|
What is the six part format for the statement of CF's?
|
1) Net cash flow from operating activitys-DM or IM
2) Net cash flow from investing activities 3) Net cash flow from financing activities 4) Net increase (decrease) in cash & cash equivalents 5) Cash & cash equivalents at beg of yr 6) Cash & cash equivalents at end of yr |
|
|
Are loans receivable that are acquired specifically for resale part of investing activities?
|
No
|
|
|
Proceeds from an insurance settlement on a bldg that was damaged or destroyed should be reported where?
|
Investing Activities
|
|
|
Where are principal pymt's to creditors who have extended long-term credit reported?
|
Financing Activities
|
|
|
When do you provide a reconciliation of Net Income in a seperate schedule?
|
If the direct method was used for operating activities.
|
|
|
What two things pretty much make up the investing section?
|
1) Acquiring and disposing of PPE & other productive assets.
2) Purchases, sales & maturities of debt & equity securities (excluding those acquired specifically for resale). Those include AFS & HTM & investments in equity securities. |
|
|
Is a disbursement of cash for a loan made by an entity a financing or investing activity?
|
Investing
|
|
|
What are 4 gen'l examples of financing activities?
|
1) obtaining resources from owners & providing them with a return on, & return of, their investment.
2) Borrowing money & repaying amts borrowed, or otherwise settling the obligation. 3) obtaining & paying for other resources obtained from creditors on long-term credit. 4) derivatives that contain a financing component |
