ACC 201 ch 11
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Asset turnover p. 527
Sales revenue divided by average total assets; measures the sales revenue generated per dollar of assets.
Cash flow to sales . p. 527
Net cash flows from operating activities divided by sales revenue; measures the operating cash flow generated per dollar of sales
Cash return on assets p. 526
Net cash flows from operating activities divided by average total assets; measures the operating cash flow generated per dollar of assets.
Direct method p. 512
Adjusts the items on the income statement to directly show the cash inflows and outflows from operations, such as cash received from customers and cash paid for inventory, salaries, rent, interest, and taxes.
Financing activities p. 509
Includes cash transactions resulting from the external financing of a business.
Indirect method p. 512
Indirect method Begins with net income and then lists adjustments to net income in order to arrive at operating cash flows. p. 512
Investing activities p. 508
Includes cash transactions involving the purchase and sale of long-term assets and current investments.
Noncash activities p. 511
Noncash activities Significant investing and financing activities that do not affect cash. p. 511
Operating activities p. 508
Includes cash receipts and cash payments for transactions relating to revenue and expense activities.
Statement of cash flows p. 508
A summary of cash inflows and cash outflows during the reporting period sorted by operating, investing, and financing activities.
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