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12 Cards in this Set
- Front
- Back
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accrual basis
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a method of summarizing operating results in terms of revenue earned and expenses incurred, rather than cash receipts or cash payments
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cash basis
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the practice of summarizing operation results in terma of cash receipts and cash payments, rather than revenue earned or expenses incurred
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cash budget
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a detailed forecast of expected futures cash receipts, usually organized departement by departement and month by month for the coming year
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cash equivalents
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highly liquid short-term investments such as treasury bills, money market funds, and commercial paper. for purposes of preparing a statement of cash flows, money held in cash equivalents is considered the same as cash. thus transfers between a ban account and cash equivalents are not considered receipts or dispursements of cash
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cash flows
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a term describing both cash receipts (inflows) and cash payments (outflows)
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complemetary products
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products that "fit together" - that tie in wit a company's other products. as a result customers attracted to one product may also purchase others
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financing activities
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transactions like borrowing, repaying borrowed amounts, raisint equity capital, or making distributions to owners. the cash effects of theset transactions are reported in the financing activities section of the statement of cash flows. noncash aspects of these transactions are disclosed in a supplemenatary schedule
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free cash flow
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the portion of the annual net cash flows from operationg activities that remains available for discretionary purposes after the basic obligations fo the business have been met. can be computed in several different ways.
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investing activities
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transactions involving acquisitions or sales of investments or plant assets and making or collecting loans. the cash aspects of these transactions are shown in the investing activities section of the SOCF. non cash aspects of these are disclosed in a supplementary schedule to this financial statement
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operating activities
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transactions entering into the determination of net income, with the exeption of gains and losses relating to financing or investing activities. the category includes such transactions as selling goods or services, earning investment income, and incurring costs and expenses, such as payments to supplies and employees, interst and income taxes. the cash efects of these transactions are reflected in the operationg activiteis section of the SOCF
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peak pricing
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the strategy of charging the higher price during periods of high demand, and a lower price in periods of slack demand. intended to both maximize revenue and shift excess demand to periods in which it can be more easily accomodated
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product mix
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the variety and relative quantities of goods and services that accompany offers for sale
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