Exercise 11-1 Match terms with their definitions (LO11-1, 11-2, 11-3, 11-4, 11-5
ID: 2437235 • Letter: E
Question
Exercise 11-1 Match terms with their definitions (LO11-1, 11-2, 11-3, 11-4, 11-5) Select the item that matches with the description Descriptions Terms Begins with net income and then lists adjustments to net income in order to rmive at operating cash flows bItem 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 Purchase of long-term assets by issuing stock 1 Shows the cash inflows and outfilows from operations such as cash received from customers and cash paid for inventory, salaries, rent, interest, and taxesExplanation / Answer
a. Indirect method
b. Depreciation expense
c. Cash return on assets
d. Financing activities
e. Operating activities
f. Investing activities
g. Non cash activities
h. Direct method
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