Flashcards in Chapter 3 - Operating Decisions Deck (5):
Increases in assets or settlements of liabilities from ongoing operation
Unearned or Deferred Revenue
When a customer pays in advance for goods or services
(a liability account)
Any outflow of cash for any purpose, whether to buy equipment, pay off bank loan, or pay employees their wages
Not all cash expenditures are expenses.
Outflows or the using up of assets or increases in liabilities from ONGOING OPERATIONS incurred to generate revenue during the period.