Term
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Definition
| For purposes of the statement of cash flows, both cash and cash equivalents. |
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Term
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Definition
| Short-term (90 days or less), highly liquid investments, including money market accounts, commercial paper, and U.S. Treasury bills. |
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Term
| Cash-generating efficiency |
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Definition
| A company's ability to generate cash from its current or continuing operations. |
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Term
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Definition
| The procedure for converting the income statement from an accrual basis to a cash basis by adjusting each item on the income statement. |
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Term
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Definition
| Business activities that involve obtaining resources from stockholders and creditors and providing the former with a return on their investments and the latter with repayment. |
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Term
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Definition
| The amount of cash that remains after deducting the funds a company must commit to continue operating at its planned level; Net Cash Flows from Operating Activites - Dividends - (Purchases of Plant Assets - Sales of Plant assets). |
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Term
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Definition
| The procedure for converting the income statement from an accrual basis to a cash basis by adjusting net icome for items that do not affect cash flows, including depreciation, amortization, depletion, gains, losses, and changes in current assets and current liabilities. |
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Term
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Definition
| Business activities that involve the acquisition and sale of marketable securities and long-term assets and the making and collecting of loans. |
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Term
| Noncash investing and financing transactions |
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Definition
| Significant investing and financing transactions involving only long-term assets, long-term liabilities, or stockholders' equity that do not affect current cash inflows or outflows. |
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Term
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Definition
| Business activities that involve the cash effects of transactions and other events that enter into the determination of net income. |
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Term
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Definition
| A financial statement that shows how a company's operating, investing, and financing activities have affected cash during an accounting period. |
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Term
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Definition
| Net Cash Flows from Operating Activities ÷ Average Total Assets |
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Term
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Definition
| Net Cash Flows from Operating Activities ÷ Sales |
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Term
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Definition
| Net Cash Flows from Operating Activities ÷ Net Income |
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