Matching Questions 124. Match each of the following items with the appropriate definitions. 1. Transactions that include making and collecting notes receivable or purchasing and selling plant...

1. Transactions that include making and collecting notes receivable or purchasing and selling plant assets or investments in other than cash equivalents and trading securities

Direct method

2. Transactions with a company's owners and creditors that include obtaining cash from issuing debt and repaying the amounts borrowed and obtaining cash from or distributing cash to owners

Statement of cash flows

3. A calculation that reports net income and then adjusts the net income amount by adding and subtracting items that are necessary to yield net cash provided (used) by operating activities

Operating activities

4. A calculation of the net cash provided (used) by operating activities that lists the major items of operating cash receipts and then subtracts the major items of operating cash payments

Financing activities

5. A financial statement that reports the cash inflows and cash outflows for an accounting period and classifies those cash flows as operating, investing or financing activities

Indirect method

6. Activities that involve the production or purchase of merchandise and the sale of goods or services to customers, including expenditures related to administering the business

Investing activities