Purpose: (L.O. 1 thru 6) This exercise will quiz you about terminology used in this chapter.
A list of accounting terms with which you should be familiar appears below:
|Free cash flow
||Statement of cash flows
For each item below, enter in the blank the term that is described.
- _____________________ A financial statement that provides information about the cash receipts and cash payments of an entity during a period, classified as operating, investing, and financing activities, in a format that reconciles the beginning and ending cash balances.
- _____________________ Cash flow activities that include (a) acquiring and disposing of investments and productive long-lived assets and (b) lending money and collecting on those loans.
- _____________________ Cash flow activities that include (a) obtaining cash from issuing debt and repaying the amounts borrowed and (b) obtaining cash from stockholders, repurchasing shares, and paying dividends.
- _____________________ Cash flow activities that include the cash effects of transactions that create revenues and expenses and thus enter into the determination of net income.
- _____________________ A method of preparing a statement of cash flows in which net income is adjusted for items that did not affect cash, to determine net cash provided by operating activities.
- _____________________ A method of determining the “net ...