Bank Examiner Knowledge Test Review

Operating Activities Cash Inflow Examples {Ans: Cash from customers, cash from interest and dividends,}What are the three distinct areas business activity is divided into on the Statement of Cash Flows? {Ans: Operating, Investing, Financing}Financing Activities Cash Inflows Example {Ans: Borrow cash from creditors, issue debt securities(bonds), issue equity securities(capital stock).}GAAP {Ans: Generally Accepted Accounting Principles - the rules that management must follow when preparing financial statements available to investors.}Investing Activities Cash Inflows Examples {Ans: Sell PPE, Sell investment securities, recieve loan payments.}Straight Line Depcreciation {Ans: spreads depreciation out equally over all periods.}Revenue Recognition Principle {Ans: revenues are recorded the period earned, not necessarily in the period that the company collects the money.}IASB {Ans: International Accounting Standards Board. Formed in 2001. Objectives: 1.) to develop a single set of high quality, understandable and enforceable global accounting standards that lead to transparent and comparable information in general purpose financial statements. 2.) to cooperate with national accounting standard-setters to achieve convergence in accounting standards across the world.}Operating Activities Cash Outflow Examples {Ans: Cash Paid to Suppliers, interest paid, other operating cash payments}Certificate of Deposit {Ans: a savings ccertificate entitling the bearer to receive