Questions and Answers
What are Cash inflows from the sale of goods and services called?
What are Cash inflows from interest received called?
What are Cash inflows from dividends received classified as?
What are Cash outflows for the purchase of merchandise inventory called?
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What are Cash outflows for salaries and wages paid classified as?
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What are Cash outflows for interest paid categorized as?
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What are Cash inflows from the sale of property, plant and equipment called?
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What are Cash inflows from the sale of debt or equity investments classified as?
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What are Cash inflows from the collection of loans from others called?
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What are Cash outflows for the purchase of property, plant and equipment classified as?
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What are Cash inflows from issuing capital stock called?
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What are Cash inflows from issuing long-term debt classified as?
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What are Cash outflows for the purchase of treasury stock called?
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What are Cash outflows for payment of cash dividends classified as?
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Study Notes
Operating Activities
- Represents core business transactions generating cash.
- Cash inflows are from sales of goods and services.
- Includes cash received from interest and dividends.
- Cash outflows include purchases of merchandise inventory.
- Cash outflows also consist of salaries and wages payments and interest paid.
Investing Activities
- Focuses on transactions involving long-term assets.
- Cash inflows arise from selling property, plant, and equipment.
- Includes cash received from selling debt or equity investments.
- Collecting on loans made to others results in inflows.
- Cash outflows come from purchasing property, plant, and equipment.
- Expenditures include purchasing debt or equity investments and making loans to others.
Financing Activities
- Concerned with transactions that affect the capital structure.
- Cash inflows from issuing capital stock enhance funding.
- Long-term debt issuance, such as bonds and mortgages, generates cash inflows.
- Short-term and long-term borrowing contributes to cash inflow.
- Cash outflows occur with the buyback of treasury stock.
- Payments of debt principal are classified as cash outflows.
- Cash dividends payments to shareholders also signify outflows.
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Description
This quiz consists of flashcards that help you understand the classification of cash flows, specifically focusing on operating activities. Each card provides a definition of different cash inflows and outflows related to operating activities, enhancing your knowledge of cash flow management.
