In the Cash Flow Statement, the Total of Net Cash

question 54

Multiple Choice

In the cash flow statement, the total of net cash flows from operating activities, net cash flows from investing activities and net cash flows from financing activities for the period equals:

• A) profit.
• B) the cash balances at the beginning of the period.
• C) total net increase or decrease in cash held for the period.
• D) the cash balances at the end of the period.

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Definitions:

Reverse Stock Split

A corporate action where a company decreases the number of its outstanding shares to increase the share price without altering the company's market capitalization.

Par Value

The nominal or face value of a bond, share, or other financial instruments, which does not necessarily reflect its market value.

Debt-Equity Ratio

The debt-equity ratio is a financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets, often used to assess financial leverage.

Residual Dividend Policy

A strategy where a company pays dividends out of the residual or leftover equity only after all project capital requirements and operational expenses are met.