CH. 11 Statement of Cash Flows
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9 terms
Terms | Definitions |
|---|---|
 cash conversion cycle | measurement of the amount of time a company's cash is tied up in its operations. |
| cash flow statement | financial statement that shows all of the sources and all of the uses of cash for an accounting period; also called the statement of cash flows. |
| direct method | format of the operating activities section of the statement of cash flows; it lists the cash receipts and cash payments resulting from a company's day-to-day operations. |
| financing activities | activities related to the issuance of, and repayment of, long-term debt or to the issuance of stock and the payment of dividends; it's a section of the statement of cash flows. |
| free cash flow | anticipated amount of cash available from operations after paying for planned investments in long-term assets and paying dividends. |
| indirect method | format of the operating activities section of the statement of cash flows; it starts with net income and reconciles to net cash provided by operating activities. |
| investing activities | activities that increase or decrease long-term assets; it's a section of the statement of cash flows. |
| operating activities | activities that create revenue or expense in the entity's major line of business; it's a section of the statement of cash flows. activities that affect the income statement. |
| statement of cash flows | financial statement that shows all of the sources and all of the uses of cash for an accounting period; also called the cash flow statement. |
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