Term
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Definition
| Shows the inflows (receipts) and outflows (payments) of cash during an accounting period, explaining how its beginning cash balance changed to its ending cash balance because of transactions that resulted in increases and decreases in cash. |
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Term
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Definition
| Include the primary activites of buying, selling, and delivering goods for sale, as well as providing services. |
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Definition
| Include lending money and collecting on the loans, investing in other companies, and buying and selling property and equipment. |
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Term
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Definition
| Include obtaining capital from the owner and providing the owner with a return on the investment, as well as obtaining capital from creditors and repaying the amounts borrowed. |
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Term
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Definition
| Subtracts the operating cash outflows from the operating cash inflows to determine the net cash provided by (or used in) operating activities. |
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Term
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Definition
| A company adjusts its net income to compute the net cash flow from operating activities. (it lists net income first and then makes adjustments to net income) |
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Term
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Definition
| The average time required to pay for inventory |
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Term
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Definition
| A company records its revenue and related expense transactions in the same accounting period that it provides goods or services, regardless of whether it receives or pays cash in that period. |
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Term
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Definition
| A company's ability to generate enough cash to remain in business and earn a satisfactory profit can also be studied by computing this. |
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