What items are considered to be operating activities on a statement of cash flows?
The Following Cash Inflows are Considered Operating Activities:- Sale of goods or services
- Sale of investments or trading securities
- Dividend revenue
- Interest revenue
The Following Cash Outflows are Considered Operating Activities:- Interest payments
- Payments for Inventory
- Wages, rent, taxes, utilities, insurance
- Purchase of trading securities
How to Calculate Accounting
Ending Inventory?Accounting Equation: Ending Inventory= Beginning Inventory + Net Purchases - Cost of Goods Sold (COGS)
How to Calculate Cost of Goods Sold?Accounting Equation:
Cost of Goods Sold (COGS) = Beginning Inventory + Net Purchases - Ending Inventory
In Accounting, Inventory is a class of asset that is intended for sale, in production for sale, or used in the production of an item for sale.
External Reporting is reporting to parties external of the company such as stockholders and the public. The opposite of
external reporting is
internal reporting which is for the management's benefit.
A
Bad debt is all or a portion of an
account receivable, note receivable, or loan that will not be collected. Management has deemed the debtor unable to pay, therefore it is a
bad debt. For example, a customer who has recently declared bankruptcy would have his accounts receivable considered
bad debts. Accounting Examples about Bad Debts:'
Percent of Accounts Receivable Method for Estimating Bad Debts ExpensePercent of Sales Method to Calculate Debt Expense
The abbreviation refers to
Free On Board. It is a type of shipping arrangement between and buyer and seller.
Free on Board (FOB) indicates the party responsible for paying the transportation costs and the point at which the ownership of goods occurs from shipper to the buyer. FOB Shipping is commonly used between many commercial companies.
A
Short Term Note Payable is a written promise by a company to pay a specified amount on a definite future date within one year or the company’s operating cycle, whichever is longer.
Accounting Definition Cash Equivalents are Short-term (redeemable in less than three months), highly
liquid investments and assets that are convertible to known amounts of cash quickly. For example, certain accounts receivables are considered
cash equivalents. A 3-month CD would also be considered a
cash equivalent.
The
accounting general ledger is a record containing all
accounts used by the company. It is the main source of a companies financial records, the
general ledger may also be known as the
chart of accounts.
It includes all accounts that make up the
accounting equation, A=L+E The
accounting general ledger is a collection of all accounts in a company's information system. A company’s size, nature of business, and diversity of operations dramatically affect the number of accounts needed in the ledger.
A
Lump Sum Asset Purchase is that
total cost of a combined purchase of land, building, or machinery and is allocated to the specific
assets according to their
relative market values.
