Chapter 12 Flashcards
1
Q
Cash equivalents are
A
- Short term highly liquid investments
- readily convertible to cash
- sufficiently close to maturity
2
Q
Classification of cash flows
A
- Operating
-Investing - Financing
3
Q
Operating activities key words
A
Interest, dividends
4
Q
Investing activities key terms
A
Long-term assets, investments, notes receivable
5
Q
Financing activities key words
A
Debt, stock, note payable
6
Q
Operating
A
Current assets, current liabilities
7
Q
Investing
A
Plant and total assets
8
Q
Financing
A
Longterm labilities and total liabilities and equity
9
Q
Indirect method of reporting steps for operating
A
1.Ni
2 get rid of non-cash items
3. Explain + or - in comment assets and liabilities
10
Q
Reporting for investing activities
A
- Identify changes in investing-related accounts
- Explain using T-accounts and reconstruction entries
3, report cash flow efforts
11
Q
Cash flow on total assets ratio
A
Cash flow fromoperations/ average total assets
