Question : Matching 150. Listed below ten terms followed by a list : 1255764

 

Matching

 

 

 

150. Listed below are ten terms followed by a list of phrases that describe or characterize the terms. Match each phrase with the best term placing the letter designating the term in the space provided.

 

Terms:

a.   Asset turnover

b.   Cash flow to sales

c.   Cash return on assets

d.   Direct method

e.   Financing activities

f.    Indirect method

g.   Investing activities

h.   Noncash activities

i.    Operating activities

j.    Statement of cash flows   

 

Phrases:

              _____  Begins with net income and then list adjustments to net income in order to arrive at operating cash flows.

              _____  Significant investing and financing activities that do not affect cash.

              _____  Sales revenue divided by average total assets; measures the sales revenue generated per dollar of assets.

              _____  Includes cash receipts and cash payments for transactions relating to revenue and expense activities.

_____  Net cash flows from operating activities divided by average total assets; measures the operating cash flow generated per dollar of assets.

_____  A summary of cash inflows and cash outflows during the reporting period sorted by operating, investing, and financing activities.

              _____  Net cash flows from operating activities divided by sales revenue; measures the operating cash flow generated per dollar of sales.

_____  Includes cash transactions resulting from the external financing of a business.

              _____  Includes cash transactions involving the purchase and sale of long-term assets and current investments.

_____  Adjusts the items on the income statement to show items such as cash received from customers, and cash paid for inventory, salaries, rent, interest and taxes.

 

 

151. For each of the following ten transactions, indicate by letter whether the cash effect of each transaction is reported in a statement of cash flows as an operating (O), investing (I), financing (F), or noncash (NC) activity. Also, indicate whether the transaction is a cash inflow (CI), cash outflow (CO), or no effect on cash (NE). The first answer is provided as an example. 

Type of Activity

 

 

Cash Inflow or Outflow

 

 

 

Transaction

O

 

CO

 

Payment of employee salaries

 

 

 

 

1. Issuance of bonds

 

 

 

 

2. Payment of income taxes

 

 

 

 

3. Payment of a long-term note payable

 

 

 

 

4. Sale of treasury stock

 

 

 

 

5. Payment of an account payable

 

 

 

 

6. Sale of land for cash

 

 

 

 

7. Purchase of long-term assets by issuing debt.

 

 

 

 

8. Collection of an account receivable

 

 

 

 

9. Issuance of common stock

 

 

 

 

10. Purchase of inventory