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Flashcard 1435526892812

Tags
#cfa #cfa-level-1 #economics #introduction #lol #microeconomics #reading-15-demand-and-supply-analysis-the-firm #study-session-4
Question
selling price and quantity sold are determined by the [...] in the [...] .
Answer
demand and supply behavior

markets where the firm sells


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Revenue is a function of selling price and quantity sold, which are determined by the demand and supply behavior in the markets into which the firm sells/provides its goods or services.

Original toplevel document

1. INTRODUCTION
services—by utility-maximizing individuals. The theory of the firm , the subject of this reading, is the study of the supply of goods and services by profit-maximizing firms. Conceptually, profit is the difference between revenue and costs. <span>Revenue is a function of selling price and quantity sold, which are determined by the demand and supply behavior in the markets into which the firm sells/provides its goods or services. Costs are a function of the demand and supply interactions in resource markets, such as markets for labor and for physical inputs. The main focus of this reading is the cost side of the







Few would argue that memorizing instructional content, so as to be able to reproduce the information verbatim from memory, is the ultimate goal of education

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In short, spaced practice can improve students’ memory for essential facts and concepts, which in turn facilitates more complex learning and problem solving.

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In brief, testing (or practicing retrieval from memory, relative to just rereading the material) boosts learning in various ways: improved mem- ory for the tested information (e.g., Kang, McDermott, & Roediger, 2007), slowed forgetting (e.g., Carpenter, Pashler, Wixted, & Vul, 2008), transfer of learning to new situations (e.g., Butler, 2010), generalization to new examples (e.g., Kang, McDaniel, & Pashler, 2011), potentiated subsequent learning (e.g., Arnold & McDermott, 2013), and augmented learner metacognition (e.g., Soderstrom & Bjork, 2014).

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When Mohammed connected his mission with the teachings of Christians and Jews and when he revealed that the great Arab sanctuary of the Ka c ba in Mecca had been conse crated by Abraham, he gave greater depth to Arab historical consciousness,

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The appropriation of biblical his tory had put the Muslims at the end of one great development; the acquaintance with Persian history made the Muslim state heir of another which, while of slighter religious significance, was of equal imaginative value and whose lesson in statecraft considerably excelled that furnished by the edifying legends of scriptural origin.

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And it was from the Greeks and Romans that the Arabs learned abstract thinking and the forming and handling of an abstract terminology.

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In exactly one hundred years, between the death of the Prophet in 632 and the Battle of Tours and Poitiers, Islam carved out its dominion.

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Flashcard 1613449268492

Question
In [.how long?.] between the death of the Prophet in 632 and the Battle of Tours and Poitiers, Islam carved out its dominion.
Answer
exactly one hundred years,


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In exactly one hundred years, between the death of the Prophet in 632 and the Battle of Tours and Poitiers, Islam carved out its dominion.

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Subject 1. Classification of Cash Flows and Non-Cash Activities
#cfa-level-1 #corporate-finance #understanding-cashflow-statements
The cash flow statement provides important information about a company's cash receipts and cash payments during an accounting period as well as information about a company's operating, investing and financing activities. Although the income statement provides a measure of a company's success, cash and cash flow are also vital to a company's long-term success. Information on the sources and uses of cash helps creditors, investors, and other statement users evaluate the company's liquidity, solvency, and financial flexibility.

Cash receipts and cash payments during a period are classified in the statement of cash flows into three different activities:

Operating Activities

These involve the cash effects of transactions that enter into the determination of net income and changes in the working capital accounts (accounts receivable, inventory, and accounts payable). Cash flows from operating activities (CFOs) reflect the company's ability to generate sufficient cash from its continuing operations. CFOs are derived by converting the income statement from an accrual basis to a cash basis. For most companies, positive operating cash flows are essential for long-run survival.

The major operating cash flows are (1) cash received from customers, (2) cash paid to suppliers and employees, (3) interest and dividends received, (4) interest paid, and (5) income taxes paid.

Special items to note:

  • Interest and dividend revenue, and interest expenses, are considered operating activities, but dividends paid are considered financing activities. Note that interest expense is reported on the income statement while dividends flow through the retained earnings statement.

    Remember that an interest/dividend item is an operating activity if it appears on the income statement. For example, payments of dividends do not appear on the income statement, and thus are not classified as operating activities.

  • All income taxes are considered operating activities, even if some arise from financing or investing.

  • Indirect borrowing using accounts payable is not considered a financing activity - such borrowing would be classified as an operating activity.

Investing Activities

These include making and collecting loans and acquiring and disposing of investments (both debt and equity) and property, plants, and equipment. In general, these items relate to the long-term asset items on the balance sheet. Investing cash flows reflect how a company plans its expansions.

Examples are:

  • Sale or purchase of property, plant and equipment.
  • Investments in joint ventures and affiliates and long-term investments in securities.
  • Loans to other entities or collection of loans from other entities.

Financing Activities

These involve liability and owner's equity items, and include:

  • Obtaining capital from owners and providing them with a return on (and a return of) their investments.
  • Borrowing money from creditors and repaying the amounts borrowed.

In general, the items in this section relate to the debt and the equity items on the balance sheet. Financing cash flows reflect how the company plans to finance its expansion and reward its owners.

Examples:

  • Dividends paid to stockholders (not interest paid to creditors!). Note that the cash outflow caused by dividends is determined by dividends paid, not dividends declared. Dividends paid are not reflected in the retained earnings account. The amount is provided in the supplementary information.
  • Issue or repurchase of the company's stocks.
  • Issue or retirement of long-term debt (including the current portion of long-term debt).

Purchase of debt and equity securities from other entities (sale of debt or equity securities of other entities) and loans to other entities (collection of loans to other entities) are

...

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Flashcard 1613730549004

Tags
#cfa-level-1 #corporate-finance #understanding-cashflow-statements
Question
Cash receipts and cash payments during a period are classified in the statement of cash flows into three different activities:
Answer
Operating

Investing

Financing


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Subject 1. Classification of Cash Flows and Non-Cash Activities
cash and cash flow are also vital to a company's long-term success. Information on the sources and uses of cash helps creditors, investors, and other statement users evaluate the company's liquidity, solvency, and financial flexibility. <span>Cash receipts and cash payments during a period are classified in the statement of cash flows into three different activities: Operating Activities These involve the cash effects of transactions that enter into the determination of net income and changes in the working capital accounts







Flashcard 1613732908300

Tags
#cfa-level-1 #corporate-finance #understanding-cashflow-statements
Question
Which activities involve the cash effects of transactions that enter into the determination of net income?
Answer
Operating activities


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Subject 1. Classification of Cash Flows and Non-Cash Activities
the company's liquidity, solvency, and financial flexibility. Cash receipts and cash payments during a period are classified in the statement of cash flows into three different activities: Operating Activities <span>These involve the cash effects of transactions that enter into the determination of net income and changes in the working capital accounts (accounts receivable, inventory, and accounts payable). Cash flows from operating activities (CFOs) reflect the company's ability to generate sufficient cash from its continuing operati







Flashcard 1613735267596

Tags
#cfa-level-1 #corporate-finance #understanding-cashflow-statements
Question
[...] (CFOs)
Answer
Cash flows from operating activities


statusnot learnedmeasured difficulty37% [default]last interval [days]               
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Subject 1. Classification of Cash Flows and Non-Cash Activities
Operating Activities These involve the cash effects of transactions that enter into the determination of net income and changes in the working capital accounts (accounts receivable, inventory, and accounts payable). <span>Cash flows from operating activities (CFOs) reflect the company's ability to generate sufficient cash from its continuing operations. CFOs are derived by converting the income statement from an accrual basis to a cash basis. For







Flashcard 1613737626892

Tags
#cfa-level-1 #corporate-finance #understanding-cashflow-statements
Question
CFOs are derived by converting the income statement from an [...] basis to a [...] basis.
Answer
accrual

cash


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Subject 1. Classification of Cash Flows and Non-Cash Activities
t income and changes in the working capital accounts (accounts receivable, inventory, and accounts payable). Cash flows from operating activities (CFOs) reflect the company's ability to generate sufficient cash from its continuing operations. <span>CFOs are derived by converting the income statement from an accrual basis to a cash basis. For most companies, positive operating cash flows are essential for long-run survival. The major operating cash flows are (1) cash received from customers, (2) cash paid to







Flashcard 1613741296908

Tags
#cfa-level-1 #corporate-finance #understanding-cashflow-statements
Question
The major operating cash flows are

(1) cash received from customers,

(2) cash paid to [...] and [...]

(3) [...] and [...] received

(4) interest paid

(5) [...] paid.
Answer
(2) suppliers and employees

(3) interest and dividends

(5) income taxes


statusnot learnedmeasured difficulty37% [default]last interval [days]               
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Subject 1. Classification of Cash Flows and Non-Cash Activities
ate sufficient cash from its continuing operations. CFOs are derived by converting the income statement from an accrual basis to a cash basis. For most companies, positive operating cash flows are essential for long-run survival. <span>The major operating cash flows are (1) cash received from customers, (2) cash paid to suppliers and employees, (3) interest and dividends received, (4) interest paid, and (5) income taxes paid. Special items to note: Interest and dividend revenue, and interest expenses, are considered operating activities, but dividends paid are considered financing a







Flashcard 1613747850508

Tags
#cfa-level-1 #corporate-finance #understanding-cashflow-statements
Question
Dividends paid are considered [...] activities
Answer
financing


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Subject 1. Classification of Cash Flows and Non-Cash Activities
and employees, (3) interest and dividends received, (4) interest paid, and (5) income taxes paid. Special items to note: Interest and dividend revenue, and interest expenses, are considered operating activities, but <span>dividends paid are considered financing activities. Note that interest expense is reported on the income statement while dividends flow through the retained earnings statement. Remember that an interest/dividend item is an operat







Flashcard 1613752569100

Tags
#cfa-level-1 #corporate-finance #understanding-cashflow-statements
Question
Interest and dividend revenue, and interest expenses, are considered [...] activities
Answer
operating


statusnot learnedmeasured difficulty37% [default]last interval [days]               
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Subject 1. Classification of Cash Flows and Non-Cash Activities
The major operating cash flows are (1) cash received from customers, (2) cash paid to suppliers and employees, (3) interest and dividends received, (4) interest paid, and (5) income taxes paid. Special items to note: <span>Interest and dividend revenue, and interest expenses, are considered operating activities, but dividends paid are considered financing activities. Note that interest expense is reported on the income statement while dividends flow through the retained earnings statement.&#13







Flashcard 1613756763404

Tags
#cfa-level-1 #corporate-finance #understanding-cashflow-statements
Question
interest expense is reported on the [...]
Answer
income statement


statusnot learnedmeasured difficulty37% [default]last interval [days]               
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Subject 1. Classification of Cash Flows and Non-Cash Activities
est paid, and (5) income taxes paid. Special items to note: Interest and dividend revenue, and interest expenses, are considered operating activities, but dividends paid are considered financing activities. Note that <span>interest expense is reported on the income statement while dividends flow through the retained earnings statement. Remember that an interest/dividend item is an operating activity if it appears on the income statement. For example,







Flashcard 1613759384844

Tags
#cfa-level-1 #corporate-finance #understanding-cashflow-statements
Question
Dividends flow through the [...] statement.

Answer
retained earnings


statusnot learnedmeasured difficulty37% [default]last interval [days]               
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Subject 1. Classification of Cash Flows and Non-Cash Activities
tems to note: Interest and dividend revenue, and interest expenses, are considered operating activities, but dividends paid are considered financing activities. Note that interest expense is reported on the income statement while <span>dividends flow through the retained earnings statement. Remember that an interest/dividend item is an operating activity if it appears on the income statement. For example, payments of dividends do not appear on the income statement,







Flashcard 1613763317004

Tags
#cfa-level-1 #corporate-finance #understanding-cashflow-statements
Question
How do you know if an interest/dividend item is an operating activity?
Answer
if it appears on the income statement


statusnot learnedmeasured difficulty37% [default]last interval [days]               
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Subject 1. Classification of Cash Flows and Non-Cash Activities
es, are considered operating activities, but dividends paid are considered financing activities. Note that interest expense is reported on the income statement while dividends flow through the retained earnings statement. Remember that <span>an interest/dividend item is an operating activity if it appears on the income statement. For example, payments of dividends do not appear on the income statement, and thus are not classified as operating activities. All income taxes are considered o







Flashcard 1613768297740

Tags
#cfa-level-1 #corporate-finance #understanding-cashflow-statements
Question
All income taxes are considered [...] activities
Answer
operating activities


statusnot learnedmeasured difficulty37% [default]last interval [days]               
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Subject 1. Classification of Cash Flows and Non-Cash Activities
t an interest/dividend item is an operating activity if it appears on the income statement. For example, payments of dividends do not appear on the income statement, and thus are not classified as operating activities. <span>All income taxes are considered operating activities, even if some arise from financing or investing. Indirect borrowing using accounts payable is not considered a financing activity - such borrowing would be classified a







Flashcard 1613772492044

Tags
#cfa-level-1 #corporate-finance #understanding-cashflow-statements
Question
How should Indirect borrowing activity (using accounts payable) be classified?
Answer
Operating activity.


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Subject 1. Classification of Cash Flows and Non-Cash Activities
vidends do not appear on the income statement, and thus are not classified as operating activities. All income taxes are considered operating activities, even if some arise from financing or investing. <span>Indirect borrowing using accounts payable is not considered a financing activity - such borrowing would be classified as an operating activity. Investing Activities These include making and collecting loans and acquiring and disposing of investments (both debt and equity) and property,







Flashcard 1613777734924

Tags
#cfa-level-1 #corporate-finance #understanding-cashflow-statements
Question
These activities include making and collecting loans and acquiring and disposing of investments (both debt and equity) and property, plants, and equipment.
Answer
Investing Activities


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Subject 1. Classification of Cash Flows and Non-Cash Activities
ing or investing. Indirect borrowing using accounts payable is not considered a financing activity - such borrowing would be classified as an operating activity. Investing Activities <span>These include making and collecting loans and acquiring and disposing of investments (both debt and equity) and property, plants, and equipment. In general, these items relate to the long-term asset items on the balance sheet. Investing cash flows reflect how a company plans its expansions. Examples are:







Flashcard 1613878922508

Tags
#cfa-level-1 #corporate-finance #understanding-cashflow-statements
Question

[...] involve liability and owner's equity items

Answer
Financing Activities


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Subject 1. Classification of Cash Flows and Non-Cash Activities
amples are: Sale or purchase of property, plant and equipment. Investments in joint ventures and affiliates and long-term investments in securities. Loans to other entities or collection of loans from other entities. <span>Financing Activities These involve liability and owner's equity items, and include: Obtaining capital from owners and providing them with a return on (and a return of) their investments. Borrowing money from creditors and repaying the amounts







Flashcard 1613883641100

Tags
#cfa-level-1 #corporate-finance #understanding-cashflow-statements
Question
Obtaining capital from owners and giving them a return on their investments is a kind of [...] activity
Answer
Financing activity


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Subject 1. Classification of Cash Flows and Non-Cash Activities
affiliates and long-term investments in securities. Loans to other entities or collection of loans from other entities. Financing Activities These involve liability and owner's equity items, and include: <span>Obtaining capital from owners and providing them with a return on (and a return of) their investments. Borrowing money from creditors and repaying the amounts borrowed. In general, the items in this section relate to the debt and the equity items on the balance sheet. Financ







Flashcard 1613887048972

Tags
#cfa-level-1 #corporate-finance #understanding-cashflow-statements
Question
Sale or purchase of property, plant and equipment is a kind of [...] activity
Answer
Investing Activities


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Subject 1. Classification of Cash Flows and Non-Cash Activities
h debt and equity) and property, plants, and equipment. In general, these items relate to the long-term asset items on the balance sheet. Investing cash flows reflect how a company plans its expansions. Examples are: <span>Sale or purchase of property, plant and equipment. Investments in joint ventures and affiliates and long-term investments in securities. Loans to other entities or collection of loans from other entities. Financing Activiti







Flashcard 1613890456844

Tags
#cfa-level-1 #corporate-finance #understanding-cashflow-statements
Question
Investments in joint ventures and affiliates and long-term investments in securities are [...] activities
Answer
Investing Activities


statusnot learnedmeasured difficulty37% [default]last interval [days]               
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Subject 1. Classification of Cash Flows and Non-Cash Activities
ent. In general, these items relate to the long-term asset items on the balance sheet. Investing cash flows reflect how a company plans its expansions. Examples are: Sale or purchase of property, plant and equipment. <span>Investments in joint ventures and affiliates and long-term investments in securities. Loans to other entities or collection of loans from other entities. Financing Activities These involve liability and owner's equity items, and include: &







Flashcard 1613893340428

Tags
#cfa-level-1 #corporate-finance #understanding-cashflow-statements
Question
Loans to other entities or collection of loans from other entities are examples of [...] activities
Answer
Investing Activities


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Subject 1. Classification of Cash Flows and Non-Cash Activities
Investing cash flows reflect how a company plans its expansions. Examples are: Sale or purchase of property, plant and equipment. Investments in joint ventures and affiliates and long-term investments in securities. <span>Loans to other entities or collection of loans from other entities. Financing Activities These involve liability and owner's equity items, and include: Obtaining capital from owners and providing them with a return







Flashcard 1613899631884

Tags
#cfa-level-1 #corporate-finance #understanding-cashflow-statements
Question
Borrowing money from creditors and repaying the amounts borrowed is an example of [...] activities.
Answer
Financing Activities


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Subject 1. Classification of Cash Flows and Non-Cash Activities
other entities. Financing Activities These involve liability and owner's equity items, and include: Obtaining capital from owners and providing them with a return on (and a return of) their investments. <span>Borrowing money from creditors and repaying the amounts borrowed. In general, the items in this section relate to the debt and the equity items on the balance sheet. Financing cash flows reflect how the company plans to finance its expans







Flashcard 1613902253324

Tags
#cfa-level-1 #corporate-finance #understanding-cashflow-statements
Question
Which section of the cashflow statement relate to the debt and the equity items on the balance sheet.
Answer
Financing Activities


statusnot learnedmeasured difficulty37% [default]last interval [days]               
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Subject 1. Classification of Cash Flows and Non-Cash Activities
iability and owner's equity items, and include: Obtaining capital from owners and providing them with a return on (and a return of) their investments. Borrowing money from creditors and repaying the amounts borrowed. <span>In general, the items in this section relate to the debt and the equity items on the balance sheet. Financing cash flows reflect how the company plans to finance its expansion and reward its owners. Examples: Dividends paid to stockholders (not interest paid







#cfa-level-1 #corporate-finance #understanding-cashflow-statements
Financing cash flows reflect how the company plans to finance its expansion and reward its owners.

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Subject 1. Classification of Cash Flows and Non-Cash Activities
ding them with a return on (and a return of) their investments. Borrowing money from creditors and repaying the amounts borrowed. In general, the items in this section relate to the debt and the equity items on the balance sheet. <span>Financing cash flows reflect how the company plans to finance its expansion and reward its owners. Examples: Dividends paid to stockholders (not interest paid to creditors!). Note that the cash outflow caused by dividends is determined by dividends paid, not




Flashcard 1613906185484

Tags
#cfa-level-1 #corporate-finance #understanding-cashflow-statements
Question
Issue or repurchase of the company's stocks is part of [...] activities.
Answer
Financing Activities


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Subject 1. Classification of Cash Flows and Non-Cash Activities
o creditors!). Note that the cash outflow caused by dividends is determined by dividends paid, not dividends declared. Dividends paid are not reflected in the retained earnings account. The amount is provided in the supplementary information. <span>Issue or repurchase of the company's stocks. Issue or retirement of long-term debt (including the current portion of long-term debt). Purchase of debt and equity securities from other entities (sale of debt or equity







Flashcard 1613908544780

Tags
#cfa-level-1 #corporate-finance #understanding-cashflow-statements
Question
Issue or retirement of long-term debt is part of [...] activities.
Answer
Financing Activities


statusnot learnedmeasured difficulty37% [default]last interval [days]               
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Subject 1. Classification of Cash Flows and Non-Cash Activities
sed by dividends is determined by dividends paid, not dividends declared. Dividends paid are not reflected in the retained earnings account. The amount is provided in the supplementary information. Issue or repurchase of the company's stocks. <span>Issue or retirement of long-term debt (including the current portion of long-term debt). Purchase of debt and equity securities from other entities (sale of debt or equity securities of other entities) and loans to other entities (collection of loans to other e







Flashcard 1613910904076

Tags
#cfa-level-1 #corporate-finance #understanding-cashflow-statements
Question
Purchase of debt and equity securities from other entities and loans to other entities are considered [...]
Answer
investing activities.


statusnot learnedmeasured difficulty37% [default]last interval [days]               
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Subject 1. Classification of Cash Flows and Non-Cash Activities
cted in the retained earnings account. The amount is provided in the supplementary information. Issue or repurchase of the company's stocks. Issue or retirement of long-term debt (including the current portion of long-term debt). <span>Purchase of debt and equity securities from other entities (sale of debt or equity securities of other entities) and loans to other entities (collection of loans to other entities) are considered investing activities. However, issuance of debt (bonds and notes) and equity securities is a financing cash inflow, and payment of dividend, redemption of debt, and reacquisition of capital stock are financi







Flashcard 1613913263372

Tags
#cfa-level-1 #corporate-finance #understanding-cashflow-statements
Question
issuance of debt and equity is a [...] cash inflow.
Answer
financing


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Subject 1. Classification of Cash Flows and Non-Cash Activities
). Purchase of debt and equity securities from other entities (sale of debt or equity securities of other entities) and loans to other entities (collection of loans to other entities) are considered investing activities. However, <span>issuance of debt (bonds and notes) and equity securities is a financing cash inflow, and payment of dividend, redemption of debt, and reacquisition of capital stock are financing cash outflows. Non-cash Activities Some investing and financing activities do not flow through the statement of cash flows because they don't require the use of cash: &







Flashcard 1613915622668

Tags
#cfa-level-1 #corporate-finance #understanding-cashflow-statements
Question

Some investing and financing activities do not flow through the statement of cash flows because they don't require the use of cash. This are called [...] activities

Answer
Non-cash Activities


statusnot learnedmeasured difficulty37% [default]last interval [days]               
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scheduled repetition interval               last repetition or drill

Subject 1. Classification of Cash Flows and Non-Cash Activities
ered investing activities. However, issuance of debt (bonds and notes) and equity securities is a financing cash inflow, and payment of dividend, redemption of debt, and reacquisition of capital stock are financing cash outflows. <span>Non-cash Activities Some investing and financing activities do not flow through the statement of cash flows because they don't require the use of cash: Retiring debt securities by issuing equity securities to the lender. Converting preferred stock to common stock. Acquiring assets through a capital lease. Obtaining long-te







Flashcard 1613917981964

Tags
#cfa-level-1 #corporate-finance #understanding-cashflow-statements
Question
Retiring debt securities by issuing equity securities to the lender. [...] activities
Answer
Non-cash Activities


statusnot learnedmeasured difficulty37% [default]last interval [days]               
repetition number in this series0memorised on               scheduled repetition               
scheduled repetition interval               last repetition or drill

Subject 1. Classification of Cash Flows and Non-Cash Activities
ition of capital stock are financing cash outflows. Non-cash Activities Some investing and financing activities do not flow through the statement of cash flows because they don't require the use of cash: <span>Retiring debt securities by issuing equity securities to the lender. Converting preferred stock to common stock. Acquiring assets through a capital lease. Obtaining long-term assets by issuing notes payable to the seller. Exchanging one non-cash asset fo







Flashcard 1613920341260

Tags
#cfa-level-1 #corporate-finance #understanding-cashflow-statements
Question
Converting preferred stock to common stock is part of [...] Activities
Answer
Non-cash Activities


statusnot learnedmeasured difficulty37% [default]last interval [days]               
repetition number in this series0memorised on               scheduled repetition               
scheduled repetition interval               last repetition or drill

Subject 1. Classification of Cash Flows and Non-Cash Activities
cash Activities Some investing and financing activities do not flow through the statement of cash flows because they don't require the use of cash: Retiring debt securities by issuing equity securities to the lender. <span>Converting preferred stock to common stock. Acquiring assets through a capital lease. Obtaining long-term assets by issuing notes payable to the seller. Exchanging one non-cash asset for another non-cash asset. The purchase of no







Flashcard 1613922700556

Tags
#cfa-level-1 #corporate-finance #understanding-cashflow-statements
Question
Acquiring assets through a capital lease is part of [...] Activities
Answer
Non-cash Activities


statusnot learnedmeasured difficulty37% [default]last interval [days]               
repetition number in this series0memorised on               scheduled repetition               
scheduled repetition interval               last repetition or drill

Subject 1. Classification of Cash Flows and Non-Cash Activities
and financing activities do not flow through the statement of cash flows because they don't require the use of cash: Retiring debt securities by issuing equity securities to the lender. Converting preferred stock to common stock. <span>Acquiring assets through a capital lease. Obtaining long-term assets by issuing notes payable to the seller. Exchanging one non-cash asset for another non-cash asset. The purchase of non-cash assets by issuing equity or debt se







Flashcard 1613925059852

Tags
#cfa-level-1 #corporate-finance #understanding-cashflow-statements
Question
Obtaining long-term assets by issuing notes payable to the seller is a [...] Activities
Answer
Non-cash Activities


statusnot learnedmeasured difficulty37% [default]last interval [days]               
repetition number in this series0memorised on               scheduled repetition               
scheduled repetition interval               last repetition or drill

Subject 1. Classification of Cash Flows and Non-Cash Activities
gh the statement of cash flows because they don't require the use of cash: Retiring debt securities by issuing equity securities to the lender. Converting preferred stock to common stock. Acquiring assets through a capital lease. <span>Obtaining long-term assets by issuing notes payable to the seller. Exchanging one non-cash asset for another non-cash asset. The purchase of non-cash assets by issuing equity or debt securities. For example, if a company purchases $200,00







Flashcard 1613927419148

Tags
#cfa-level-1 #corporate-finance #understanding-cashflow-statements
Question
Exchanging one non-cash asset for another non-cash asset. [...] Activities
Answer
Non-cash Activities


statusnot learnedmeasured difficulty37% [default]last interval [days]               
repetition number in this series0memorised on               scheduled repetition               
scheduled repetition interval               last repetition or drill

Subject 1. Classification of Cash Flows and Non-Cash Activities
f cash: Retiring debt securities by issuing equity securities to the lender. Converting preferred stock to common stock. Acquiring assets through a capital lease. Obtaining long-term assets by issuing notes payable to the seller. <span>Exchanging one non-cash asset for another non-cash asset. The purchase of non-cash assets by issuing equity or debt securities. For example, if a company purchases $200,000 of land by issuing a long-term bond, this transaction is







Flashcard 1613929778444

Tags
#cfa-level-1 #corporate-finance #understanding-cashflow-statements
Question
The purchase of non-cash assets by issuing equity or debt securities. [...] Activities
Answer
Non-cash Activities


statusnot learnedmeasured difficulty37% [default]last interval [days]               
repetition number in this series0memorised on               scheduled repetition               
scheduled repetition interval               last repetition or drill

Subject 1. Classification of Cash Flows and Non-Cash Activities
quity securities to the lender. Converting preferred stock to common stock. Acquiring assets through a capital lease. Obtaining long-term assets by issuing notes payable to the seller. Exchanging one non-cash asset for another non-cash asset. <span>The purchase of non-cash assets by issuing equity or debt securities. For example, if a company purchases $200,000 of land by issuing a long-term bond, this transaction is a non-cash one, as it does not involve direct outlays of cash. Therefo







Flashcard 1613932137740

Tags
#cfa-level-1 #corporate-finance #understanding-cashflow-statements
Question
if a company purchases $200,000 of land by issuing a long-term bond, this transaction is [...]
Answer
Non-cash Activities


statusnot learnedmeasured difficulty37% [default]last interval [days]               
repetition number in this series0memorised on               scheduled repetition               
scheduled repetition interval               last repetition or drill

Subject 1. Classification of Cash Flows and Non-Cash Activities
ough a capital lease. Obtaining long-term assets by issuing notes payable to the seller. Exchanging one non-cash asset for another non-cash asset. The purchase of non-cash assets by issuing equity or debt securities. For example, <span>if a company purchases $200,000 of land by issuing a long-term bond, this transaction is a non-cash one, as it does not involve direct outlays of cash. Therefore, it is excluded from the statement of cash flows. These types of transactions should be disclosed in a separate schedule as part of the statement of cash flows or in the footn







Flashcard 1613934497036

Tags
#cfa-level-1 #corporate-finance #understanding-cashflow-statements
Question
Non-cash transactions should be disclosed in a [...] or in the footnotes to the financial statements.
Answer
separate schedule as part of the statement of cash flows


statusnot learnedmeasured difficulty37% [default]last interval [days]               
repetition number in this series0memorised on               scheduled repetition               
scheduled repetition interval               last repetition or drill

Subject 1. Classification of Cash Flows and Non-Cash Activities
ies. For example, if a company purchases $200,000 of land by issuing a long-term bond, this transaction is a non-cash one, as it does not involve direct outlays of cash. Therefore, it is excluded from the statement of cash flows. <span>These types of transactions should be disclosed in a separate schedule as part of the statement of cash flows or in the footnotes to the financial statements. Differences between IFRS and U.S. GAAP The above discussions are based on the U.S. GAAP. Under IFRS there is some flexibility in reporting some items of cash f