Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
Bus 202
Glossary quiz #1
| Question | Answer |
|---|---|
| Cash Debt Coverage | A cash-based ratio used to evaluate solvency. Calculated as net cash provided by OA divided by average TOTAL liabilities |
| Current cash debt coverage | A cash-based ratio used to evaluated liquidity, calculated as net cash provided by OA divided by average CURRENT liabilities |
| Direct Method | A method of determining net cash provided by OA by adjusting each item in the income statement from the accrual basis to the cash basis. This method shows operating cash receipts and payments |
| Financing activities | Cash flow activities that include (a) obtaining cash from issuing debt and repaying the amounts borrowed and (b) obtaining cash from stockholders, repurchasing shares, and paying dividends. |
| Free cash flow | Net cash provided by OA after adjusting for capital expenditures and dividends paid |
| Indirect Method | A method of preparing a statement of cash flows in which net income is adjusted for items that do not affect cash, to determine net cash provided by OA |
| Investing activities | Cash flow activities that include (a) cash transactions that involve the purchase or disposal of investments and PPE using cash and (b) lending money and collecting the loans |
| Operating activities | Cash flow activities that include the cash effects of transactions that create revenues and expenses and thus enter into the determination of net income |
| Product Life Cycle | A series of phases in a product's sales and cash flows over time. These phases, in order of occurrence, are introductory, growth, maturity, and decline |
| Statement of Cash Flows | A basic financial statement that provides information about the cash receipts and cash payments of an entity during a period, classified as the 3 types of activities, in a format that reconciles the beginning and ending cash balances |
Created by:
cammccarty
Popular Accounting sets