| Cash flow on total assets | Ratio of operating cash flows to average total assets; not sensitive to income recognition and measurement; partly reflects earnings quality.
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| Direct method | Presentation of net cash from operating activities for the statement of cash flows that lists major operating cash receipts less major operating cash payments.
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| Financing activities | Transactions with owners and creditors that include obtaining cash from issuing debt, repaying amounts borrowed, and obtaining cash from or distributing cash to owners.
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| Indirect method | Presentation that reports net income and then adjusts it by adding and subtracting items to yield net cash from operating activities on the statement of cash flows.
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| Investing activities | Transactions that involve purchasing and selling of long-term assets, includes making and collecting notes receivable and investments in other than cash equivalents.
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| Operating activities | 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.
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| Statement of cash flows | A financial statement that lists cash inflows (receipts) and cash outflows (payments) during a period; arranged by operating, investing, and financing.
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