Classifying
Flows
Cash Flows,
Operating
Cash Flows,
Investing &
Financing
Other
Terms
Review
Potpourri
$100
$100
$100
$100
$100
$200
$200
$200
$200
$200
$300
$300
$300
$300
$300
$400
$400
$400
$400
$400
$500
$500
$500
$500
$500
Classifying Flows - $100
The section of the SCF in which
depreciation expense is added back.
What is Operating Activities?
Back to Board
Classifying Flows - $200
The section in which a carpentry company
would report its purchase of table saws.
What is Investing Activities?
Back to Board
Classifying Flows - $300
The section in which the Acme Co. would
report the $5,000,000 received from issuing
common stock.
What is Financing Activities?
Back to Board
Classifying Flows - $400
The section in which a company would
report an increase in accounts receivable.
What is Operating Activities?
Back to Board
Classifying Flows - $500
The section in which a company would
report an increase in accrued liabilities.
What is Operating Activities?
Back to Board
Cash Flows, Operating - $100
Method of presenting the Operating
Activities section of the cash flow
statement that adjusts net income to
compute cash flows from operating
activities.
What is the Indirect Method?
Back to Board
Cash Flows, Operating - $200
The reason depreciation is added back
into net income on the SCF.
What is “because depreciation expense
does not affect cash but was subtracted
when computing net income”?
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Cash Flows, Operating - $300
The direction of adjustment made in an
indirect method SCF for an increase in
accounts receivable.
What subtracted from Net Income?
(Because the cash collected from customers
is less than accrual basis revenues.)
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Cash Flows, Operating - $400
The direction of adjustment made in an
indirect method SCF for a decrease in
accounts payable.
What is subtracted from Net Income?
(Because cash payments are greater than
amounts obtained on account.)
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Cash Flows, Operating - $500
The direction of adjustment made in an
indirect method SCF for a decrease in
inventory.
What is added to Net Income? (Because
less was spent on inventory than was
expensed in COGS.)
Back to Board
Cash Flows, I & F - $100
The types of accounts relevant to the Cash
Flows from Investing section.
What are “accounts related to short-term
investments and long-term assets”?
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Cash Flows, I & F - $200
How proceeds from the sale of equipment are
reported on the SCF.
What is added as an investing cash flow?
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Cash Flows, I & F - $300
DAILY DOUBLE!!!
Cash Flows, I & F - $400
The section under which an increase in
contributed capital due to a stock issuance
is recorded on the SCF.
What is Financing?
Back to Board
Cash Flows, I & F - $500
The section under which a $10,000
increase in long-term debt is recorded on
the SCF.
What is Cash Flows from Financing?
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Other Terms - $100
Net Cash Flow from Operating Activities
divided by Cash Paid for PP&E.
What the Capital Acquisitions Ratio?
Back to Board
Other Terms - $200
Net Cash Flow from Operating Activities
divided by Net Income.
What is the Quality of Income Ratio?
Back to Board
Other Terms - $300
A cash flow ratio used to determine
whether a company has been able to pay
its interest using operating cash flows.
What is the Cash Coverage Ratio?
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Other Terms - $400
Cash inflows and outflows directly related
to components of net income.
What are Cash Flows from Operating
Activities?
Back to Board
Other Terms - $500
Growth in sales and seasonality can affect
this ratio and are not usually cause for
concern.
What is the Quality of Income ratio?
Back to Board
Review Potpourri - $100
The directional effect of a stock buyback
on EPS.
What is Increase?
Back to Board
Review Potpourri - $200
The term that describes issuances of
common stock when some has previously
been issued.
What is Seasoned New Issue?
Back to Board
Review Potpourri - $300
The accounts affected when $10,000 of
amortization is recorded against a
company’s patent.
What are Amortization Expense and Patent?
Back to Board
Review Potpourri - $400
Net Sales Revenue divided by Average Net
Fixed Assets.
What is the Fixed Asset Turnover Ratio?
Back to Board
Review Potpourri - $500
When the company performs the services
promised to a customer.
What is when Revenues are earned?
Back to Board
Daily Double

Specify Your Wager!
Cash Flows, I & F --How cash dividends are reported on the
SCF (Added or subtracted, and section it
is recorded under).
What is subtracted under the Cash Flows
from Financing Activities section?
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