Chapter 14

Question 1

Cash receipts and cash payments of a business

Answer 1

Cash Flows

Question 2

Format of the operating activities section of the statement of cash flows, lists operating cash receipts and cash payments

Answer 2

Direct Method

Question 3

Activities that increase or decrease long-term liabilities and equity

Answer 3

Financing Activities

Question 4

Amount of cash available from operating activities after paying for planned investments in long-term assets and dividends

Answer 4

Free Cash Flow

Question 5

Format of operating activities section of the statement of cash flows, starts with net income and reconciles to net cash provided by operating activities

Answer 5

Indirect Method

Question 6

Activities that increase or decrease long-term assets

Answer 6

Investing Activities

Question 7

Investing and financing activities that do no involve cash

Answer 7

Non-cash Investing and Financing Activities

Question 8

Activities that create revenue or expense in the entity’s business

Answer 8

Operating Avtivities

Question 9

Reports on a business’ cash receipts and cash payments for a specific period

Answer 9

Statement of Cash Flows