In cost accounting, the examination, quantification, and explanation of the effects of cost drivers. This occurs when various sales channels within a company's supply chain compete with each other for the same business. A surcharge imposed by a carrier on ocean freight charges to offset foreign currency fluctuations. Founded ina not-for-profit educational organization consisting ofmembers who are interested in quality improvement. A schedule of end items to finish the product for specific customers' orders in a make-to-order or assemble-to-order environment.
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UCC System identification number, or key, used for trade items products and services. A repository of data that has been specially prepared to support decision-making applications. An inventory system where counts are performed continuously, often eliminating the need for an annual overall inventory. A structured, measurement-driven process that continually reviews and improves performance. A class of software for planning and managing enterprise-wide the resources needed to take customer orders, ship them, account for them, and replenish all needed goods according to customer orders and forecasts. Goodwill is associated with amortization expense on the income statement. The change in prepaids or the amount paid for insurance is classified as an operating activity.
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An empty backhaul is called deadheading. A complete order has all items on the order delivered in the quantities requested. A functional group of one or more EDI transactions that are sent to the same location in the same transmission, and are identified by a functional group header and trailer. A specialized framework that carries a rail or marine container. Two Mexican and two Canadian railroads would also qualify, if they were US companies. A resource may be a person, machine, or facility.
Direct or Indirect method. ASC is also a strong supporter of direct method but even here it is not a compulsion. However, ASC requires entities to provide a schedule reconciling net income for the period with net cash flows from operating activities if entity follows direct method to prepare the financial statement.
This reconciliation is provided automatically when indirect method is followed. For interest and dividends received , again an entity has the option to disclose them either under operating activities or investing activities.
However, it is mentioned that financial institutions generally classify interest and dividends received and paid as operating activities cash flows. ASC GAAPs however, gives clear instructions on how to disclose interest and dividends received and paid which is as follows:.
Interest received inflow Interest paid outflow Dividends received inflow. IAS7 treats bank overdraft generally as borrowings current liabilities. If this is the case then any changes in overdraft shall be disclosed under the heading financing activities.
ASC however, bank overdrafts are simply treated as short-term borrowings and any fluctuation is disclosed as financing activities cash flows. Bank overdrafts are not permitted to be included as a component of cash and cash equivalents.
IAS 7 requires a separate disclosure of any cash flows relating to income tax. In essence IAS 7 permits the disclosure of income tax cash flows under headings other than operating activities if such cash flows can be specifically identified. AS requires all of the tax related cash flows to be disclosed as operating cash flows. However, there is one exception to it. If entity has received any tax benefits arisen due to increase in the value of instruments issued under share-based payments then such cash flows are disclosed as financing cash flows.
ASC specifically prohibits disclosure of cash flow per share. ASC further states that cash flow statement is not intended to present the financial performance of the entity as we already have another financial statement for that purpose. ASC requires non-cash investing and financing activities to be reported in a separate schedule which can either be appended to statement of cash flows or included in the notes to the financial statements. My considerable internet look up has now been honored with awesome information to exchange with my guests.
Call first to see if there is a charge and how much it cost for each record copied. Now those that appear to be individual motggares, normally would be in a 2nd position and recorded after a large motggare.
These are called mom and pop carry back seconds. These are what you are seeking. As noted, the three essential categories of cash flow are operating activities, investing activities, and financing activities. The components of each of these will be addressed separately.
Operating activities are the bread-and-butter transactions that keep the business running. Most notably, they include incoming revenue from the sale of goods or services and most kinds of outgoing payments.
Cash flow from operating activities doesn't include principal paid on or received from loans, and only includes transactions that were completed during the period. This simply means that an operating transaction is not considered cash flow until the cash is actually received or paid, as opposed to just being recorded as accounts receivable or payable.
In general, if an activity would appear on the company's income statement, it would be a candidate for the operating section of the cash flow statement. Net changes in balance sheet categories from period to period also represent cash flow; thus, a net decrease in accounts receivable from year to year normally suggests an increase in cash flow for that period. Sometimes goods or services are paid for prior to the period in which the benefit is matched to revenue recognized.
This results in a deferred or prepaid expense. Items such as insurance premiums that are paid in advance of the coverage period are classified as prepaid. Sometimes goods or services are received and used by the company before they are paid for, such as telephone service or merchandise inventory.
These items are called accrued expenses, or payables, and are recognized on the income statement as an expense before the cash flow occurs. Investment cash flow results from 1 the purchase or sale of property and equipment, 2 the purchase or sale of securities and related investments, and 3 loans made to other businesses.
It includes only the principal or book value of the investment. Interest and depreciation are classified as operating cash flow, as are net gains or losses on investments. Because of these distinctions, cash flow from investment activities is typically more complex to calculate than that from other categories. Financing activities consist of transactions affecting a company's liabilities and shareholder equity. Mainly involving how the company obtains capital and enhances the value of its stock, they include such things as issuing bonds, payments on debt, paying dividends, and issuing and buying back stock.
The difference lies in the presentation of the operating cash flow information. Companies that use the direct method are required, at a minimum, to report separately the following classes of operating cash receipts and payments:. Companies are encouraged to further break down any operating cash receipts and payments that they consider meaningful.
The indirect method, by contrast, reports operating cash flow based on changes in the balance sheet the distribution of assets and liabilities from period to period as they relate to net income.
Thus, instead of reporting the total cash received from customers, an indirect statement only lists the change in cash received from the previous period. The net cash flow reported should be the same as in the direct method, but in the indirect method the level of detail tends to be less.
The key elements of the operating activities section using the indirect method are as follows:. A few additional categories are used in some circumstances. Each category is either added or subtracted from net income depending on whether it corresponds to an inflow or outflow of cash. When all of these factors are combined, they equal the net operating cash flow for the period. As an alternative, some cash flow statements using the indirect method report operating cash flow as a single line item and present the reconciliation details elsewhere in a supplementary schedule.
According to FASB standards, the direct method also requires a supplementary schedule that essentially incorporates the indirect measures into the statement.
Due to this added burden, the majority of companies tend to use the indirect method only, despite the FASB's stated preference for the direct. Figure I shows a modified statement of cash flows from the Coca-Cola Company using the indirect method. Regardless of whether the direct or the indirect method is used, the operating section of the cash flow statement ends with net cash provided used by operating activities.
This is the most important line item on the cash flow statement. A company has to generate enough cash from operations to sustain its business activity. If a company continually needs to borrow or obtain additional investor capitalization to survive, the company's long-term existence is in jeopardy.
The presentation of the investing and financing sections of the statement is the same in each method. Every balance sheet account reflects specific activity. There are only a few distinctive transactions that affect each account. Following are examples of some of the common changes in balance sheet accounts that register as cash flow.
Accounts receivable increases when the company sells merchandise or does a service on credit, and decreases when the customer pays its bill.
Accounts receivable is associated with sales or revenue on an income statement. The change in accounts receivable or the cash collected from customers is classified as an operating activity. Inventory increases when the company buys merchandise for resale or use in its manufacturing process, and decreases when the merchandise is sold.
Inventory is associated with the income statement account cost of goods sold COGS. The change in inventory or the cash paid for inventory purchases is classified as an operating activity.
Prepaid insurance increases when the company pays insurance premiums covering future periods and decreases when the time period of coverage expires. The change in prepaids or the amount paid for insurance is classified as an operating activity. Land, building, and equipment accounts increase when the company purchases additional assets and decrease when the assets are sold. The only time the income statement is affected is when the asset is sold at a price higher or lower than book value, at which time a gain or loss on sale of assets appears on the income statement.
The amount of cash used or received from the purchase or sale of such assets is classified as an investing activity. The gain or loss is reported as operating cash flow. Accumulated depreciation increases as the building and equipment depreciates and decreases when building and equipment is sold.