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ACC 221: CASH FLOW

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