Choose the Appropriate Letter to Match the Term and the Definition

Choose the appropriate letter to match the term and the definition. Not all definitions will be used.
Term
_____ Operating Activities
_____ Indirect Method
_____ Working Capital
_____ Cash Equivalents
_____ Investing Activities
_____ Supplemental Disclosures
_____ Direct Method
_____ Financing Activities
Definition
Cash inflows and outflows related to components of net income.
Include assets that are very liquid and are purchased by the entity within three months of maturity.
These activities include only purchases made with borrowed funds.
Reports the components of cash flows from operating activities as gross receipts and gross payments.
This ratio uses net income instead of operating cash flow to analyze a company's ability to finance the cost of its debt.
Measures the ability of a company to finance its interest payments with its operating cash flow before taxes and interest.
A measure of the amount by which current assets exceed current liabilities.
These activities include money lent by a company as well as money borrowed by a company.
Must include cash paid for interest and income tax in a separate schedule.
Cash inflows and outflows related to the sale or purchase of investments and long-lived assets.
Cash inflows and outflows related to financing sources external to the company (owners and lenders).
Presents the operating activities section of the cash flow statement by adjusting net income to compute cash flows from operating activities.