Match the following terms to the appropriate statement by placing the letter to the left of each statement.
| a. | Direct method | e. | Operating activities |
| b. | Financing activities | f. | Sources of cash |
| c. | Indirect method | g. | Statement of cash flows |
| d. | Investing activities | h. | Uses of cash |
| ______ | 1. | Explains the change in the cash account balance between the beginning and |
end
| | of the period by showing how cash was generated and spent |
| ______ | 2. | Activities that generate cash receipts |
| ______ | 3. | Activities that affect a company's investments in assets other than |
| | current operating assets |
| ______ | 4. | Starts with net income and adjusts for non-cash items |
| ______ | 5. | Activities that involve external funding |
| ______ | 6. | Activities that require cash disbursements |
| ______ | 7. | Activities that accomplish the company's purpose of being in business |
| ______ | 8. | Reports the specific operating activities that provided and used cash |