Problem Solving Survival Guide to accompany Financial Accounting, 8th Edition

EXERCISE 13-10

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:

Direct method	Investing activities
Financing activities	Operating activities
Free cash flow	Statement of cash flows
Indirect method

Instructions

For each item below, enter in the blank the term that is described.

1. _____________________ 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.
2. _____________________ 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.
3. _____________________ 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.
4. _____________________ Cash flow activities that include the cash effects of transactions that create revenues and expenses and thus enter into the determination of net income.
5. _____________________ 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.
6. _____________________ A method of determining the “net ...