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statement of cash flows (or) SCF (or) cash flow statement
This financial statement reports the major changes in a company’s cash and cash equivalents during the time period of the income statement.
statement of cash flows (or) SCF (or) cash flow statement
This financial statement reports the major changes in a company’s cash and cash equivalents during the time period of the income statement.
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direct method
This method of preparing the statement of cash flows is preferred by the FASB, but it is rarely used.
direct method
This method of preparing the statement of cash flows is preferred by the FASB, but it is rarely used.
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free cash flow
This is the remainder of 1) net cash flows from operating activities, minus 2) the required amount of capital expenditures. (Sometimes the dividends paid are also subtracted.)
free cash flow
This is the remainder of 1) net cash flows from operating activities, minus 2) the required amount of capital expenditures. (Sometimes the dividends paid are also subtracted.)
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operating activities
The cash flows involving these activities are reported in the first section of the statement of cash flows.
operating activities
The cash flows involving these activities are reported in the first section of the statement of cash flows.
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investing activities
The cash flows from these activities involve the noncurrent assets and are reported in the second section of the statement of cash flows.
investing activities
The cash flows from these activities involve the noncurrent assets and are reported in the second section of the statement of cash flows.
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financing activities
The cash flows from these activities involve debt, noncurrent liabilities, and stockholders’ equity. They are reported in the third section of the statement of cash flows.
financing activities
The cash flows from these activities involve debt, noncurrent liabilities, and stockholders’ equity. They are reported in the third section of the statement of cash flows.
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supplemental disclosures (or) supplementary disclosures
This part of the statement of cash flows reports the significant noncash transactions as well as the amounts paid for interest and income taxes.
supplemental disclosures (or) supplementary disclosures
This part of the statement of cash flows reports the significant noncash transactions as well as the amounts paid for interest and income taxes.
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net income
Under the indirect method, this is the first amount shown in the operating activities section of the statement of cash flows.
net income
Under the indirect method, this is the first amount shown in the operating activities section of the statement of cash flows.
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depreciation expense
This common expense is added to net income under the indirect method of preparing the statement of cash flows because it reduced net income but it did not use cash.
depreciation expense
This common expense is added to net income under the indirect method of preparing the statement of cash flows because it reduced net income but it did not use cash.
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income taxes paid
This tax related item is likely to appear in the supplementary disclosures for the statement of cash flows.
income taxes paid
This tax related item is likely to appear in the supplementary disclosures for the statement of cash flows.
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cash and cash equivalents
This balance sheet line reports a company’s cash, money market accounts and highly liquid investments which had a maturity date of three months or less when they were purchased.
cash and cash equivalents
This balance sheet line reports a company’s cash, money market accounts and highly liquid investments which had a maturity date of three months or less when they were purchased.
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cash equivalents
This term is defined as highly liquid investments or accounts which had a maturity date of three months or less when they were purchased.
cash equivalents
This term is defined as highly liquid investments or accounts which had a maturity date of three months or less when they were purchased.
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cash proceeds from the sale of a plant asset
This is the amount of cash received when a noncurrent asset is sold. It is reported as a positive amount in the second section of the statement of cash flows.
cash proceeds from the sale of a plant asset
This is the amount of cash received when a noncurrent asset is sold. It is reported as a positive amount in the second section of the statement of cash flows.
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gain on sale of equipment
This occurs when equipment is sold for more than its book value. The amount is deducted from net income in the operating activities section of the statement of cash flows using the indirect method.
gain on sale of equipment
This occurs when equipment is sold for more than its book value. The amount is deducted from net income in the operating activities section of the statement of cash flows using the indirect method.
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loss on sale of equipment
This occurs when equipment is sold for less than its book value. The amount is added to the net income in the operating activities section of the statement of cash flows using the indirect method.
loss on sale of equipment
This occurs when equipment is sold for less than its book value. The amount is added to the net income in the operating activities section of the statement of cash flows using the indirect method.
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positive amounts (or) amounts not in parentheses
On the statement of cash flows these amounts represent cash received, a cash increase, a cash inflow, favorable for the company’s cash, etc.
positive amounts (or) amounts not in parentheses
On the statement of cash flows these amounts represent cash received, a cash increase, a cash inflow, favorable for the company’s cash, etc.
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negative amounts (or) amounts in parentheses
On the statement of cash flows these represent cash paid, cash spent, a cash outflow, unfavorable for the company’s cash, etc.
negative amounts (or) amounts in parentheses
On the statement of cash flows these represent cash paid, cash spent, a cash outflow, unfavorable for the company’s cash, etc.
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significant noncash investing and financing activities
The exchange of common stock for property is an example of these activities, which are part of the supplemental disclosures required for the statement of cash flows.
significant noncash investing and financing activities
The exchange of common stock for property is an example of these activities, which are part of the supplemental disclosures required for the statement of cash flows.
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capital expenditures
These are the amounts spent for additions to a company’s property, plant and equipment. They are presented as a negative amount in the second section of the statement of cash flows.
capital expenditures
These are the amounts spent for additions to a company’s property, plant and equipment. They are presented as a negative amount in the second section of the statement of cash flows.
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necessary capital expenditures
This amount is deducted from the cash from operating activities in computing the amount of free cash flow.
necessary capital expenditures
This amount is deducted from the cash from operating activities in computing the amount of free cash flow.
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net cash flows from financing activities
This is the net result of combining the positive and negative cash flow amounts shown in the third section of the statement of cash flows.
net cash flows from financing activities
This is the net result of combining the positive and negative cash flow amounts shown in the third section of the statement of cash flows.
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cash inflows
These cash flows are indicated by positive amounts on the statement of cash flows.
cash inflows
These cash flows are indicated by positive amounts on the statement of cash flows.
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cash outflows
These cash flows are indicated by negative amounts (amounts in parentheses) on the statement of cash flows.
cash outflows
These cash flows are indicated by negative amounts (amounts in parentheses) on the statement of cash flows.
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dividends paid
These are a distribution of cash to stockholders and are reported in parentheses in the financing activities section of the statement of cash flows.
dividends paid
These are a distribution of cash to stockholders and are reported in parentheses in the financing activities section of the statement of cash flows.
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retirement of bonds (or) redemption of bonds
This results in a cash outflow (reported in the financing activities section) when a corporation buys back its bonds from existing bondholders.
retirement of bonds (or) redemption of bonds
This results in a cash outflow (reported in the financing activities section) when a corporation buys back its bonds from existing bondholders.
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net cash flows from operating activities
This is the net result of combining the positive and negative cash flow amounts shown in the first section of the statement of cash flows.
net cash flows from operating activities
This is the net result of combining the positive and negative cash flow amounts shown in the first section of the statement of cash flows.
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net cash flows from investing activities
This is the net result of combining the positive and negative cash flow amounts shown in the second section of the statement of cash flows.
net cash flows from investing activities
This is the net result of combining the positive and negative cash flow amounts shown in the second section of the statement of cash flows.
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quality of earnings
This is a judgment concerning a corporation’s net income after comparing it to the corporation’s cash from operating activities.
quality of earnings
This is a judgment concerning a corporation’s net income after comparing it to the corporation’s cash from operating activities.
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