FR&A Cash Flow

Question 1

Cash flow from operating activities

Answer 1

The net amount of cash provided from operating activities

Question 2

Cash flow from Operations

Answer 2

The net amount of cash provided from operating activities

Question 3

Dealing securities

Answer 3

Securities held by banks or other financial intermediariaries for trading purposes

Question 4

Direct format

Answer 4

With reference to the cash flow statement, a format for the presentation of the statement in which cash flow from operating activities is shown as operating cash receipts less operating cash disbursements

Question 5

Direct method

Answer 5

With reference to the cash flow statement, a format for the presentation of the statement in which cash flow from operating activities is shown as operating cash receipts less operating cash disbursements

Question 6

Financing activities

Answer 6

Activities related to obtaining or repaying capital to be used in the business (equity and long-term debt)

Question 7

Free cash flow

Answer 7

The actual cash that would be available to the companies investors after making all investments necessary to maintain the company as an ongoing enterprise; the internally general are funds that can be distributed to the company’s investors without impairing the value of the company

Question 8

Indirect format

Answer 8

With reference to cash flow statements, a format for the presentation of the statement which in the operating cash flow section begins with net income then shows additions and subtract old to arrive at operating cash flow

Question 9

Indirect method

Answer 9

With reference to cash flow statements, a format for the presentation of the statement which, in the operating cash flow section begins with net income then shows additions and subtractions to arrive at operating cash flow

Question 10

Investing activities

Answer 10

Activities associated with the acquisition and disposal of property, plant, and equipment; intangible assets; other long-term assets; and both long-term and short-term investments in the equity and debt (bonds and loans issued by other companies

Question 11

Operating activies

Answer 11

Activities that are part of the day-to-day business functioning of an entity such as selling inventory and providing services

Question 12

Operating cash flow

Answer 12

The net amount of cash provided from operating activities

Question 13

Trading securities

Answer 13

Under US GAAP, a category of debt securities held by a company with the intent to trade them