Chapter 12 Statement of Cash Flows

Question 1

Cash Flow Statement

Answer 1

explains the change of cash flow from one accounting period to the next

Question 2

Accrual vs. Cash Basis

Answer 2

accrual: tracks revenues and expense at period incurred

cash basis: record revenue/expense in the period that cash is collected/paid

Question 3

Noncash Expenditures

Answer 3

i.e. Depreciation/amortization

Question 4

Three Classifications of Cash Flows

Answer 4

Operations, Investing, and Financing

Question 5

Indirect Method

Question 6

Cash Flow From Operations (CFFO)

Answer 6

Net income/loss, depreciation, and change in CA/CL

Question 7

Cash Flow from Investing (CFFI)

Answer 7

property, plant, and equipment (long-term/non-current) assets

Question 8

Cash Flow from Financing (CFFF)

Answer 8

Non-current liabilities (i.e. long-term notes payable)

Question 9

Noncash Expenditures

Question 10

Current Assets

Answer 10

assets that can be converted into cash within the year

Question 11

Current Liabilities

Answer 11

liabilities that can paid off within the year

Question 12

Long-Term Assets

Answer 12

assets that cannot be paid within the year