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Flashcards in Chapter 16 Deck (6)
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1
Q

direct approach

A

The preferred method for preparing the statement of cash flows; operating cash flows are presented according to their direct source (e.g., cash received from customers)

2
Q

financing activities

A

A cash flow category; including receipts from stock issues, bonds, notes and loans, – and payments for loan repayment, acquisitions of treasury stock, and dividend distributions.

3
Q

indirect approach

A

An alternative method for preparing the statement of cash flows; operating cash flows are presented as a reconciliation of income to cash from operating activities.

4
Q

investing activities

A

A cash flow category; including receipts from disposal of investments and long-term assets – and payments to acquire long-term assets and investments.

5
Q

operating activities

A

A cash flow category; generally related to transactions that enter into the determination of income – items that are not investing or financing.

6
Q

statement of cash flows

A

A financial statement that summarizes the cash flows relating to operating, investing, financing, and noncash investing/financing activities of an entity.