Match each of the following term with the corresponding description. Not all descriptions will be used. _____ Operating activities _____ Indirect method _____ Cash equivalent _____ Investing activities _____ Direct method _____ Financing activities A. Measures the percent of net income that comes from high-margin products. B. Includes such events as the receipt of dividends and interest on investment assets. C. Includes assets that are very liquid and have original maturities of three months or less. D. The percent of total debt represented by a company's cash account. E. These activities include only purchases made with borrowed funds. F. Where cash flows from operating activities are calculated by converting each revenue and expense item from an accrual to a cash basis. G. This ratio multiplies net income by the average rate of interest the company receives on its investments. H. This ratio uses net income instead of operating cash flow to Analysis a company's ability to finance the cost of its debt. I. Measures the ability of a company to finance its interest payments with its operating cash flow before taxes and interest. J. These activities include money lent by a company as well as money borrowed by a company. K. The purchases and sales of investment assets. L. Measures the proportion of property, plant, and equipment a company replaces in an accounting period. M. These activities include changes in a company's debt or its shareholders' equity accounts. N. Where cash flows from operating activities are calculated by making adjustments to net income.
Match each of the following term with the corresponding description. Not all descriptions will be used.
_____ Operating activities
_____ Indirect method
_____ Cash equivalent
_____ Investing activities
_____ Direct method
_____ Financing activities
A. Measures the percent of net income that comes from high-margin products.
B. Includes such events as the receipt of dividends and interest on investment assets.
C. Includes assets that are very liquid and have original maturities of three months or less.
D. The percent of total debt represented by a company's cash account.
E. These activities include only purchases made with borrowed funds.
F. Where cash flows from operating activities are calculated by converting each revenue and expense item from an accrual to a cash basis.
G. This ratio multiplies net income by the average rate of interest the company receives on its investments.
H. This ratio uses net income instead of operating cash flow to Analysis a company's ability to finance the cost of its debt.
I. Measures the ability of a company to finance its interest payments with its operating cash flow before taxes and interest.
J. These activities include money lent by a company as well as money borrowed by a company.
K. The purchases and sales of investment assets.
L. Measures the proportion of property, plant, and equipment a company replaces in an accounting period.
M. These activities include changes in a company's debt or its shareholders' equity accounts.
N. Where cash flows from operating activities are calculated by making adjustments to net income.
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