Shared Flashcard Set

Details

The 5 Equations
5 Cash Equations
6
Accounting
Undergraduate 3
12/15/2012

Additional Accounting Flashcards

 


 

Cards

Term
1. Cash Collection from Customers
Definition
=Sales (revenue) - Increase in A/R
Term
2a. Purchases
Definition
= COGS + Increase in Inventory
Term
2b. Cash Payment to Suppliers
Definition
= Purchases (2a) - Increase in A/P
Term
3. Cash Payment for Operating Expenses
Definition
= Operating Expenses - Increase in AEP + Increase in Prepaid Expenses
Term

4. Cash Payment for Taxes

 

Definition
= Income Tax Expense - Increase in Income Taxes Payable
Term
5. Cash Payment for Interest
Definition
= Interest Expense - Increase in Interest Payable
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