Question

Please match the term with the explanation. Each term and each explanation is used only once.

Question 1 options:

Non-cash expense that is added as an adjustment under the indirect method Starts with net income and adjusts it to net cash provided by operating activities Cash inflow from investing activities Reports cash receipts and cash payments that increase or decrease long-term assets Reports on a business’s cash receipts and cash payments for a period of time Cash receipts and cash payments of a business Calculated by combining the net cash flows from operating activities, net cash flows from investing activities and net cash flows from financing activities Cash outflow from financing activities Report cash inflows and outflows involved in long-term liabilities and equity Cash inflow from financing activities Cash outflow from investing activities Purchase of equipment financed by a long term note Reports on activities that create revenue or expense

1. Statement of Cash Flows 2. Cash flows 3. Operating activities section 4. Investing activities section 5. Financing activities section 6. Non-cash investing and financing activities 7. Indirect method 8. Depreciation expense 9. Increase (decrease) in cash 10. Sale of equipment 11. Purchase of a building 12. Issue stock for cash 13. Payment of dividends

Answer 1