fin. statement that gives info about cash receipts/payments during a period and classifies into: operating, investing, financing activities
Direct Method
adjust each item in the income statement from the accrual to cash basis
Financing activities
cash flow activities from long-term liability and equity accounts. Includes: obtaining cash by issuing debt and repaying, obtaining cash from investors
Free cash flow
cash provided by operating activities less cash used by investing activities
Indirect method
a method of preparing a cash flow statement in which net income is adjusted for items that did not affect cash
Investing activities
cash flows from long-term asset accounts. Includes: acquiring and disposing investings and long-lived asset and lending money and collecting those lones
Operating activities
cash flow activities that include the cash effects of transactions that create revenues and expenses, and thus affect net income