Sources of Information for Measuring Performance Are

question 6

Multiple Choice

Sources of information for measuring performance are

• A) company financial records
• B) increases in business
• C) word of mouth
• D) observations and reporting

Understand how to calculate free cash flow from provided financial information.

Analyze and determine cash payments to suppliers based on inventory and accounts payable changes.

Understand the direct method of reporting cash flows from operating activities, including the calculation of cash payments for operating expenses.

Gain proficiency in identifying items that impact the statement of cash flows, including operational and non-operational activities.

---

Definitions:

Extraordinary Gain

A gain resulting from events or transactions that are both unusual in nature and infrequent in occurrence, separated from regular business operations.

Fair Market Value

The price at which an asset would sell in the market under conditions where buyers and sellers are acting freely, informed, and without undue pressure.

Book Value

The net value of a company's assets as listed on the balance sheet, calculated as total assets minus intangible assets (like goodwill) and liabilities.

Interest Rate

The percentage at which interest is paid by a borrower for the use of money that they borrow from a lender.