Sometimes Business Opportunities Come Unexpectedly, and the Small Business Owner

question 71

True/False

Sometimes business opportunities come unexpectedly, and the small business owner must then take advantage of that opportunity presented.

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Definitions:

Operating Activities

Activities that are directly related to the primary operations of the company, including cash inflows and outflows from selling products and services.

Indirect Method

A financial reporting approach to prepare the cash flow statement where non-cash activities are adjusted to the net income to calculate cash flow from operating activities.

Statement of Cash Flows

A financial statement that details the inflows and outflows of cash within a company during a specific period.

Cash Receipts

The collection of money (cash, checks, electronic transfers) by a business from its customers, either for goods sold or services provided.