2025 || ACCOUNTING 202- FINAL EXAM ||
COMPLETE SOLUTIONS 100% VERIFIED!!
1. Statement of Purpose is to record cash receipts (inflows) and cash payments (outflows) during
Cash Flows a period
2. Three Types of Operating, Investing, Financing
Cash Flow Activi-
ties
3. Operating Activi- -include those transactions and events that determine net income
ties -examples: the production and purchase of merchandise, the sale of goods and
services to customers, and the expenditures to administer the business.
-if a note results from sales to customers, its cash receipts are classified as an
operating activity, regardless of if it is short-term or long-term
-GAAP requires that payments of interest expense be classified as an operating
activity
-this is a reconciliation when using the indirect method
4. A net cash in- the receipts in a category exceed the payments
flow (source) oc-
curs when...
5. A net cash out- the payments in a category exceed the receipts
flow (use) occurs
when...
6. Investing Activi- -generally include those transactions and events that attect long-term assets,
ties namely, the purchase and sale of long-term assets.
-also includes 1) the purchase and sale of short-term investments in the securities
of other entities, other than cash equivalents and trading securities and 2) lending
and collecting money for notes receivable
7. Financing Activi- -include those transactions and events that attect long-term liabilities and equity.
ties -examples are 1) obtaining cash from issuing debt debt and repaying the amounts
, 2025 || ACCOUNTING 202- FINAL EXAM ||
COMPLETE SOLUTIONS 100% VERIFIED!!
borrowed and 2) receiving cash from or distributing cash to owners
-involve the company's owners and creditors
8. Indirect method reports net income and then adjusts it for items necessary to obtain net cash
of reporting provided or used by operating activities
-it does NOT report individual items of cash inflows and cash outflows from
operating activities
-instead, it reports the necessary adjustments to reconcile net income to net cash
provided or used by operating activities
9. The informa- 1)comparative balance sheets 2) current income statement 3) additional informa-
tion to prepare tion
the statement of
cash flows comes
from...
10. Financial state- applies analytical tools to general-purpose financial statements and related data
ment analysis for making business decisions
11. Liquidity and Effi- a company's ability to handle short-term debt, and to eflciently generate revenues.
ciency
12. Solvency ability to generate future revenues and meet long-term obligations.
13. Profitability ability to provide financial rewards suflcient to attract and retain financing
14. Market Prospects ability to generate positive market expectations
15. Horizontal Analy- comparison of a companies financial performance across TIME
sis
16. Vertical Analysis Measurement of a companies performance to a base amount
17. Market price per common share/earnings per share
COMPLETE SOLUTIONS 100% VERIFIED!!
1. Statement of Purpose is to record cash receipts (inflows) and cash payments (outflows) during
Cash Flows a period
2. Three Types of Operating, Investing, Financing
Cash Flow Activi-
ties
3. Operating Activi- -include those transactions and events that determine net income
ties -examples: the production and purchase of merchandise, the sale of goods and
services to customers, and the expenditures to administer the business.
-if a note results from sales to customers, its cash receipts are classified as an
operating activity, regardless of if it is short-term or long-term
-GAAP requires that payments of interest expense be classified as an operating
activity
-this is a reconciliation when using the indirect method
4. A net cash in- the receipts in a category exceed the payments
flow (source) oc-
curs when...
5. A net cash out- the payments in a category exceed the receipts
flow (use) occurs
when...
6. Investing Activi- -generally include those transactions and events that attect long-term assets,
ties namely, the purchase and sale of long-term assets.
-also includes 1) the purchase and sale of short-term investments in the securities
of other entities, other than cash equivalents and trading securities and 2) lending
and collecting money for notes receivable
7. Financing Activi- -include those transactions and events that attect long-term liabilities and equity.
ties -examples are 1) obtaining cash from issuing debt debt and repaying the amounts
, 2025 || ACCOUNTING 202- FINAL EXAM ||
COMPLETE SOLUTIONS 100% VERIFIED!!
borrowed and 2) receiving cash from or distributing cash to owners
-involve the company's owners and creditors
8. Indirect method reports net income and then adjusts it for items necessary to obtain net cash
of reporting provided or used by operating activities
-it does NOT report individual items of cash inflows and cash outflows from
operating activities
-instead, it reports the necessary adjustments to reconcile net income to net cash
provided or used by operating activities
9. The informa- 1)comparative balance sheets 2) current income statement 3) additional informa-
tion to prepare tion
the statement of
cash flows comes
from...
10. Financial state- applies analytical tools to general-purpose financial statements and related data
ment analysis for making business decisions
11. Liquidity and Effi- a company's ability to handle short-term debt, and to eflciently generate revenues.
ciency
12. Solvency ability to generate future revenues and meet long-term obligations.
13. Profitability ability to provide financial rewards suflcient to attract and retain financing
14. Market Prospects ability to generate positive market expectations
15. Horizontal Analy- comparison of a companies financial performance across TIME
sis
16. Vertical Analysis Measurement of a companies performance to a base amount
17. Market price per common share/earnings per share
