Accounting Chapters 14 and 15 Flashcards
1
Q
free cash flow =
A
net cash provided by operating activities - cash payments planned for investments in long-term assets - cash dividends
2
Q
what are the three basic types of cash flow activities?
A
Operating, investing, financing
3
Q
two cash flow methods :
A
indirect and direct
4
Q
three ways to analyze financial statements:
A
horizontal, vertical, ratio
5
Q
horizontal analysis formula
A
(dollar amount of change / base period amount) x 100
6
Q
trend analysis ( a type of horizontal analysis) formula
A
(any period amount / base period amount) x 100
7
Q
vertical analysis formula
A
(specific item / base amount) x 100
