If a Company Is to Succeed Over the Long-Term,a Positive

question 8

True/False

If a company is to succeed over the long-term,a positive cash flow from operating activities is necessary.An established,healthy company has positive cash flows from operating activities which are sufficient to pay for replacement of current productive assets and provide additional cash flows for business growth.

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Definitions:

Subsidiary Ledger

A detailed ledger that contains the granular transaction details supporting a summary account in the general ledger.

Sales Journal

A specialized journal used to record all sales of merchandise on credit, organizing transactions systematically for accounting purposes.

Cash Receipts Journal

A financial journal that records all cash inflows to the business, including sales, loan proceeds, and investment income.

General Ledger

A complete record of all financial transactions over the life of a company, serving as the primary data source for the financial statements.