Classifying Flows

Other Terms

Review Potpourri

$100 $100 $100

$200 $200 $200

$300 $300 $300

$400 $400 $400

$500

Cash Flows, Investing & Financing

$400

$100

$200

$300

$500

Cash Flows, Operating

$100

$200

$300

$400

$500 $500 $500

Classifying Flows - $100

The section of the SCF in which amortization expense is added back.

What is Operating Activities?

Back to Board

Classifying Flows - $200

The section in which a carpentry company would report its purchase of table saws.

What is Investing Activities?

Back to Board

Classifying Flows - $300

The section in which the Acme Co. would report the $5,000,000 received from issuing common shares.

What is Financing Activities?

Back to Board

Classifying Flows - $400

The section in which a company would report an increase in accounts receivable.

What is Operating Activities?

Back to Board

Classifying Flows - $500

The section in which a company would report an increase in accrued liabilities.

What is Operating Activities?

Back to Board

Cash Flows, Operating - $100

Method of presenting the Operating Activities section of the cash flow statement that adjusts net income to compute cash flows from operating activities.

What is the Indirect Method?

Back to Board

Cash Flows, Operating - $200

The reason amortization is added back into net income on the SCF.

What is “because amortization expense does not affect cash but was subtracted when computing net income”?

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Cash Flows, Operating - $300

The direction of adjustment made in an indirect method SCF for an increase in accounts receivable.

What is subtracted from Net Income? (Because the cash collected from customers is less than accrual basis revenues)

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Cash Flows, Operating - $400

The direction of adjustment made in an indirect method SCF for a decrease in accounts payable.

What is subtracted from Net Income? (Because cash payments are greater than amounts obtained on account)

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Cash Flows, Operating - $500

The direction of adjustment made in an indirect method SCF for a decrease in inventory.

What is added to Net Income? (Because less was spent on inventory than was expensed in COGS)

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Cash Flows, I & F - $100

The types of accounts relevant to the Cash Flows from Investing section.

What are “accounts related to long-lived tangible and intangible assets” (as well as other investments)?

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Cash Flows, I & F - $200

How proceeds from the sale of equipment are reported on the SCF.

What is added as a cash flow from investing activity?

Back to Board

Cash Flows, I & F - $300

DAILY DOUBLE!!!

Cash Flows, I & F - $400

The section under which an increase in contributed capital due to a share issuance is recorded on the SCF.

What is Financing?

Back to Board

Cash Flows, I & F - $500

The section under which a $10,000 increase in long-term debt is recorded on the SCF.

What is Cash Flows from Financing?

Back to Board

Other Terms - $100

Net Cash Flow from Operating Activities divided by Cash Paid for PP&E.

What is the Capital Acquisitions Ratio?

Back to Board

Other Terms - $200

Net Cash Flow from Operating Activities divided by Net Income.

What is the Quality of Income Ratio?

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Other Terms - $300

A cash flow ratio used to measure the portion of income that was generated in cash.

What is the Quality of Income Ratio?

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Other Terms - $400

Cash inflows and outflows directly related to components of net income.

What are Cash Flows from Operating Activities?

Back to Board

Other Terms - $500

Growth in sales and seasonality can affect this ratio and are not usually cause for concern.

What is the Quality of Income ratio?

Back to Board

Review Potpourri - $100

Back to Board

The directional effect of a share buyback on EPS.

What is Increase?

Review Potpourri - $200

Back to Board

The term that describes issuances of common shares when some have previously been issued.

What is Seasoned New Issue?

Review Potpourri - $300

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The accounts affected when $10,000 of amortization is recorded against a company’s patent.

What are Amortization Expense and Patent?

Review Potpourri - $400

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Net Sales Revenue divided by Average Net Fixed Assets.

What is the Fixed Asset Turnover Ratio?

Review Potpourri - $500

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When the company performs the services promised to a customer.

What is when Revenues are earned?

Daily Double Specify Your Wager!

Cash Flows, I & F ---

How cash dividends are reported on the SCF (Added or subtracted, and section it is recorded under).

Back to Board

What is subtracted under the Cash Flows from Financing Activities section?