Cash that flows into the firm minus cash that goes out of the firm.
What is CASH FLOW?
100
corrections to retained earnings for errors of an earlier period
What are prior period adjustments?
100
three types of activities on statement of cash flows in order of importance
What is operating, investing, financing?
100
depreciation/amortization
What is a positive operating activity cash flow?
100
formula for computing cash receipts from customers
What is sales revenue +/- change in accounts receivable?
200
Delayed payments, bloated inventories, paying down debt.
What is BAD CASH FLOW?
200
four types of audit opinions for audit reports
What are unqualified, qualified, adverse, disclaimer?
200
two formats for operating activities
What is the indirect and direct method?
200
purchases of investments that are not cash equivalents
What is a negative investing cash flow item?
200
formula for payments to employees
What is salary (wage) expense +/- change in salary(wage) payable
300
the formula for estimated value of common stock?
What is (estimated income in the future)/investment capitalization rate?
300
the formula for income tax expense
What is income before income tax per the income statement * income tax rate?
300
cash flow statement used by 98.7% of companies
What is the indirect method?
300
selling treasury stock
What is a positive financing cash flow item?
300
formula for payments for income tax
What is income tax expense +/- change in income tax payable
400
formula for current market value of the company
What is (# of shares of common stock outstanding X current market price per share)?
400
the formula for income taxes payable
What is taxable income per the tax return * income tax rate?
400
cash flow activities affect long term liabilities and owners' equity on the balance sheet
What are financing cash flows?
400
gain on sale of long term assets
What is a negative operating activity cash flow item?
400
formula for computing payments for operating expenses other than interest and income taxes
What is operating expenses +/- change in prepaids +/- change in accrued liabilities?
500
two types of earnings per share
What is basic eps and diluted eps?
500
the combined state and federal income tax rate for most corporations
What is 40%?
500
four purposes of statement of cash flows
What is predicts future cash flows, evaluates management decisions, determines ability to pay dividends and interest, and shows the relationship of net income to cash flows
500
increases in current assets other than cash
What is a negative operating activity item?
500
formula for computing payment to suppliers
What is cost of goods sold +/- change in inventory +/- change in accounts payable?