ACC 221: CASH FLOW

Study Flashcards
ACC 221
Front Back
Issuance of Common Stock
Source >>>Financing Activity
• Issuance of Note payable Long-term
source >>> Financing Activity
Buy Land
USE >>>> INVESTING ACTIVITY
Buy Equipment
USE >>>>>>>> INVESTING ACTIVITY
Paying Dividends to Stockholders
USE >>>>>> FINANCING ACTIVITY
Buy Supplies
USE >>>>> OPERATING ACTIVITY
Pay Rent
USE >>>>> OPERATING ACTIVITY
Pay Wages
USE >>>>> OPERATING ACTIVITY
Collect Revenue
SOURCE>>>>> OPERATING ACTIVITY
Pay Interest to bank
USE >>>>> OPERATING ACTIVITY
Depreciation
SOURCE>>>>> OPERATING ACTIVITY
• Asset Line Items—Rules for assigning an S or a U to the change
Decreases Source of cash Increases Use of cash
• Liability and Equity Line Items—Rules for assigning an S or a U to the change
Increases Source of cash Decrease >>>> Use
Operating Activities
cash in and out flows resulting from transactions affecting Net Income, revenue or expense accounts
Contra-Asset Line Items—Rules for assigning an S or a U to a change
increases (becomes more negative) Source of Cash o decreases (becomes less negative Use of Cash
Investing Activities
cash in and out flows resulting from the purchase or sale of long-lived productive assets (primarily fixed assets)
Financing Activities:
cash in and out flows resulting from transactions with owners, or borrowing on notes/bonds/mortgages etc. from creditors
TREASURY STOCK
USE>>>>>> financing activity
merchandise inventory
operating
PrePaid Insurance
operating
gain/loss on sale of land *one in equity
gain U<<>>>>LOSS S>>>>>>Operating
Sell land
source and investment

Access the best Study Guides, Lecture Notes and Practice Exams