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12 Cards in this Set
- Front
- Back
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Statement of Cash Flows |
Report cash receipts (inflows) and cash payments(outflows) during a period |
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Operating Activities |
Transactions and events that determine net income. |
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Financing activities |
Those transactions and events that affect long-term liabilities and equity. |
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Cash Account |
Is where company's cash receipts and cash payments are recorded |
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Non Cash Accounts |
When a company records inflows and outflows with debits and credits to the cash account, it also records credits and debits in noncash accounts. (Reflecting double-entry accounting) |
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Direct Method of Reporting |
Separately lists each major item of the operating cash receipts and each major item of operating cash payments. |
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Indirect Method of Reporting |
Reports net income and then adjusts it for items necessary to obtain net cash provided or used by operating activities |
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Three Types of Adjustments |
1)Changes in Currents Assets and Current Liabilites 2) For Operating Items Not Providing or Using Cash 3)For Nonoperating Items |
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Three Stage of process Analysis |
1) identify the changes in financing related accounts 2) Explain these changes using reconstruction analysis, 3) report their cashflow effects |
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Cash Coverage of Growth |
=Operating Cash Flow / Cash outflow for plant assets |
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Operating Cash Flow to Sales |
=Operating Cash Flow / Net Sales |
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Cash Flow on Total Asset |
= Cash Flow From Operations / Average Total Assets |
