Company assets

Recording sales and expenses when they occur, regardless of cash exchange

A firm's assets by creditors

When a company's earnings or income is generated

Recording sales and expenses when cash is received or paid

A company's cash inflow and outflow

Cash flow from aquiring or disposing property

Cash inflow and outflow of operating activities

shows customers and payments for operating expenses

recorded information of cash flows

expenses associated with day-to-day operations

Shows a company's assets, liabilities, and owners' equity at a specific time

A company's earnings

Firm's economic resources used to operate and generate profits

A firm's assets by owners after all obligations

Assets by creditors and tax authorities

expenses that are associated with sales

Reduction in the value of an asset over time

An increase in the value of an asset over time

Decline of assets

Information on prices paid out

Business sector that involves cash inflows

Depreciation method where the asset's value is reduced by an equal amount each year

Distribution of sales by product types

difference between cash and non-cash transactions

values of investment and business performance

transactions that are missing from the profit and loss report

Measures a company's earnings or income generated

Difference between net sales and the cost of goods sold

operating expenses such as sales and marketing expenses

taxes or loan interest

Costs such as depreciation, amortization, and overhead costs

obsolete inventory charges

Expenses associated with the day-to-day operation of a business

Unit margin expressed as a percentage of price

refers to a profitbability measure

Indirect Method

Cash Accounting System

Accrual Accounting System

Direct Method

sales recorded once the cash is received

equal assets minus liabilities

Revenue minus expenses, including income taxes

generating future net cash flows

Income Statement

Net Sales

Financial Statement

Depreciation

Cash flows from raising funds

A company's cash inflows and outflows from operating, investing, and financing activities

Cash inflows and outflows for operating activities

Money a firm has that does not need to be paid back

assets

sales

equity

liabilities

True

False

managers

creditors

owners

employees

revenue minus expenses

resources to use to generate revenues

Cash flows from sales to customers and payments for operating expenses

inflows and outflows with operating investing and financing activities

A company's cash inflow and outflow

Cash flow that acquires or disposes of property, plant, equipment, and investments

positive cash flows and assessing reasons for the difference between accrual and cash flows

shows how much owners investment changes

goods sold or services perfomed to provide revenue

owners claim against assets of the business

Cash flows from raising funds and distributing funds to owners and creditors

Is reflected on the balance sheet at book sheet

Shows actual cash inflows and outflows of operating activities

Net income as the base and converts the income into the cash flow

Works from net income, so bottom of income statement adjusts it to the cash basis

shows the major gross cash receipts and payments

Shows the difference between accrual-based net income and cash flow from operations

information on prices paid out

Inventory of completed products ready for sale

distribution of sales by product types