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Chapter 21: The Statement of Cash Flows Revisited

Horizontales
Cash flows from _____ activities are both inflows and outflows of cash caused by the acquisition and disposition of assets.
This approach is named for the fact that the cash effect of each operating activity is reported directly in the statement of cash flows.
These are money market funds, Treasury bills, and commercial paper.
_____ investing and financing activities are transactions that do not increase cash but may affect cash in the future.
Verticales
This approach derives the net cash increase or decrease from operating activities indirectly by starting with reported net income and working backwards to convert that amount to a cash basis.
Cash flows from _____ activities are both inflows and outflows of cash that result from activities reported in the income statement.
Cash flows from _____ activities are both inflows and outflows of cash resulting from external funding of a business.