Solved

Match Each of the Following Items with the Appropriate Definition

Question 258

Matching

Match each of the following items with the appropriate definition.Use each item only once.

Premises:

Responses:

cash from operating activities minus dividends and capital expenditures

indirect method

section of the statement of cash flows,which includes all cash receipts and cash disbursements for routine sales and purchases made in the course of doing business

cash budget

managers use this information internally to anticipate any cash shortages

cash from financing activities

section of the statement of cash flows,which includes all cash receipts and all cash disbursements for loans,contributions from owners,and distributions to owners

cash from operating activities

method of preparing the operating activities section of the statement of cash flows,which shows every cash inflow and every cash outflow

cash from investing activities

method of preparing the operating activities section of the statement of cash flows,which starts with net income and makes adjustments for all the items that are not cash

free cash flow

section of the statement of cash flows,which includes all cash receipts and all cash disbursements for long-term business assets

direct method

Premises:

cash from operating activities minus dividends and capital expenditures

section of the statement of cash flows,which includes all cash receipts and cash disbursements for routine sales and purchases made in the course of doing business

managers use this information internally to anticipate any cash shortages

section of the statement of cash flows,which includes all cash receipts and all cash disbursements for loans,contributions from owners,and distributions to owners

method of preparing the operating activities section of the statement of cash flows,which shows every cash inflow and every cash outflow

method of preparing the operating activities section of the statement of cash flows,which starts with net income and makes adjustments for all the items that are not cash

section of the statement of cash flows,which includes all cash receipts and all cash disbursements for long-term business assets

Responses:

indirect method

cash budget

cash from financing activities

cash from operating activities

cash from investing activities

free cash flow

direct method

Correct Answer:

Premises:

Responses:

cash from operating activities minus dividends and capital expenditures

section of the statement of cash flows,which includes all cash receipts and cash disbursements for routine sales and purchases made in the course of doing business

managers use this information internally to anticipate any cash shortages

section of the statement of cash flows,which includes all cash receipts and all cash disbursements for loans,contributions from owners,and distributions to owners

method of preparing the operating activities section of the statement of cash flows,which shows every cash inflow and every cash outflow

method of preparing the operating activities section of the statement of cash flows,which starts with net income and makes adjustments for all the items that are not cash

section of the statement of cash flows,which includes all cash receipts and all cash disbursements for long-term business assets