Chapter 16 Glossary

Chapter 16 Glossary - cash from operating activities on the...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Glossary for Chapter 16 Cash flow on total assets Ratio of operating cash flows to average total assets; not sensitive to income recognition and measurement; partly reflects earnings quality. Direct method Presentation of net cash from operating activities for the statement of cash flows that lists major operating cash receipts less major operating cash payments. Financing activities Transactions with owners and creditors that include obtaining cash from issuing debt, repaying amounts borrowed, and obtaining cash from or distributing cash to owners. Indirect method Presentation that reports net income and then adjusts it by adding and subtracting items to yield net
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: cash from operating activities on the statement of cash flows. Investing activities Transactions that involve purchasing and selling of longterm assets, includes making and collecting notes receivable and investments in other than cash equivalents. Operating activities Activities that involve the production or purchase of merchandise and the sale of goods or services to customers, including expenditures related to administering the business. Statement of cash flows A financial statement that lists cash inflows (receipts) and cash outflows (payments) during a period; arranged by operating, investing, and financing....
View Full Document

This note was uploaded on 02/21/2012 for the course ACCT 202 taught by Professor Walterberry during the Spring '10 term at Old Dominion.

Ask a homework question - tutors are online