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Significant Noncash Activities definitions Flashcards

Significant Noncash Activities definitions
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  • Significant Noncash Activities
    Major investing or financing transactions that do not involve cash and are disclosed separately at the bottom of the statement of cash flows.
  • Statement of Cash Flows
    Financial report detailing cash inflows and outflows from operating, investing, and financing activities during a period.
  • Investing Activities
    Transactions involving the acquisition or disposal of long-term assets, typically reported in the cash flow statement.
  • Financing Activities
    Transactions related to changes in a company's equity and borrowings, such as issuing stock or repaying debt.
  • Disclosure
    Supplementary information provided at the bottom of the cash flow statement to inform users about noncash transactions.
  • Note Payable
    Written promise to pay a specified amount, often used in noncash exchanges for assets like land.
  • Land
    Long-term asset that may be acquired through noncash exchanges, such as trading for a note payable.
  • Bonds Payable
    Long-term liability representing amounts owed to bondholders, which can be retired through noncash means.
  • Common Stock
    Equity security issued by a company, sometimes exchanged directly for liabilities without cash involvement.
  • Par Value
    Nominal value assigned to each share of stock, used in accounting for equity transactions.
  • Additional Paid-In Capital (APIC)
    Equity account reflecting amounts received from shareholders above the par value of issued stock.
  • Journal Entry
    Accounting record documenting the details of a transaction, including noncash exchanges between accounts.
  • Cash Account
    Ledger account tracking a company's available cash, unaffected by significant noncash activities.
  • Equity
    Ownership interest in a company, which can be affected by noncash transactions like issuing stock for debt.
  • Financial Statement Users
    Individuals or entities analyzing financial reports, who rely on disclosures for a complete understanding of company activities.