Match Each Term with the Appropriate Definition

question 67

Multiple Choice

Match each term with the appropriate definition.Not all definitions will be used.
-Free Cash Flow

• A)Results from activities such as purchases of goods and assets,payment of debt,payment of cash dividends,and payment of taxes.
• B)The starting point for calculating operating cash flows with the direct method.
• C)The percent of a company's net cash flow that comes from investing and financing activities.
• D)A balance sheet that shows the starting and ending balance of the different accounts;it is used to calculate the net cash flow provided by operating activities.
• E)Purchases and sales of this are classified as operating activities.
• F)Reported as supplement disclosures or in the notes section to the financial statements rather than within the body of the statement of cash flows.
• G)Cash flows from operations in excess of amount paid to replace property,plant and equipment and to pay cash dividends to stockholders.
• H)Cash flows in excess of net income.
• I)Purchases and sales of this are classified as investing activities.
• J)Results from activities such as sales of goods and assets,receipt of cash dividends,and receipts of interest.
• K)A financial statement that tracks the flow of cash into and out of a company according to the three types of activities that generate the flows.
• L)An adjustment made when using the indirect method of calculating cash flows from operating activities.
• M)Cash a company receives that is not subject to income tax.
• N)The starting point for calculating operating cash flows with the indirect method.

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Definitions:

Corporate Organization

The structured arrangement of roles, responsibilities, and relationships within a corporation to facilitate management and operations.

Transfer of Ownership

The act of conveying property or title from one person or entity to another.

Limited Life

Refers to the finite duration for which an entity, such as a corporation or partnership, is established to operate.

Double Taxation

A tax principle referring to income taxes paid twice on the same source of income, often seen in corporate dividends taxed at both the corporate and personal levels.