Chapter 18

Question 0

The accounting method that records revenues when they are received and expenses when they are paid

Answer 0

Cash basis of accounting

Question 1

The accounting method that records revenues when they are earned and expenses when they are incurred

Answer 1

Accrual basis of accounting

Question 2

The cash receipts and cash payments of a company

Answer 2

Cash flows

Question 3

Cash receipts and payments involving debt or equity transactions

Answer 3

Financing activities

Question 4

Cash receipts and cash payments involving the sale or purchase of assets used to earn revenue over a period of time

Answer 4

Investing activities

Question 5

The cash receipts and payments necessary to operate a business on a day-to-day basis

Answer 5

Operating activities

Question 6

A statement that summarizes cash receipts and cash payments resulting from business activities during a fiscal period

Answer 6

Statement of cash flows