Cash Dividends and Interest Received Can Only Be Considered Cash

question 35

True/False

Cash dividends and interest received can only be considered cash inflows from investing activities.

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Definitions:

Total Equity

The total net value of a company, calculated as the difference between its total assets and total liabilities.

Excess Liquidity

The situation in which an individual or entity has more liquid assets available than is necessary for immediate operational needs.

Freeze-Out

happens in a corporate context when majority shareholders exclude minority shareholders from decision-making, often to coerce them into selling their shares.

Minority Shareholders

Individuals or entities that own a smaller portion of a company's shares, thus having less influence over corporate decisions than majority shareholders.