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Match Each the Appropriate Definitions with the Correct Following Items

Question 162

Matching

Match each the appropriate definitions with the correct following items:

Premises:

Responses:

Indirect method

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.

Investing activities

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.

Financing activities

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.

Direct method

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.

Statement of cash flows

Transactions that include making and collecting notes receivable or purchasing and selling plant assets or investments in other than cash equivalents and trading securities.

Operating activities

A calculation that reports net income and then adjusts the net income amount by adding and subtracting items that are necessary to yield net cash provided (used) by operating activities.

Premises:

Indirect method

Investing activities

Financing activities

Direct method

Statement of cash flows

Operating activities

Responses:

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.

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.

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.

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.

Transactions that include making and collecting notes receivable or purchasing and selling plant assets or investments in other than cash equivalents and trading securities.

A calculation that reports net income and then adjusts the net income amount by adding and subtracting items that are necessary to yield net cash provided (used) by operating activities.

Correct Answer:

Premises:

Responses:

Indirect method

Investing activities

Financing activities

Direct method

Statement of cash flows

Operating activities