Match (by letter) the following items with the description or example that best fits. Each letter is used only once.
Terms
__________ 1. Operating activities.
__________ 2. Investing activities.
__________ 3. Financing activities.
__________ 4. Noncash activities.
__________ 5. Indirect method.
__________ 6. Direct method.
__________ 7. Depreciation expense.
__________ 8. Cash return on assets.
Descriptions
a. Begins with net income and then lists adjustments to net income in order to arrive at operating cash flows.
b. Item included in net income, but excluded from net operating cash flows.
c. Net cash flows from operating activities divided by average total assets.
d. Cash transactions involving lenders and investors.
e. Cash transactions involving net income.
f. Cash transactions for the purchase and sale of long-term assets.
g. Purchase of long-term assets by issuing stock.
h. Shows the cash inflows and outflows from operations such as cash received from customers and cash paid for inventory, salaries, rent, interest, and taxes.