A QuickBooks QBB File

question 23

Multiple Choice

A QuickBooks QBB file

• A)Can be opened and used by simply clicking on the QBB file
• B)Is a compressed file that must be restored as a QBW file before transactions can be entered
• C)Is a compressed file that can be unzipped using any unzip software application
• D)All of the choices are correct

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Definitions:

Indirect Method

A reporting approach used in cash flow statements where net income is adjusted for non-cash transactions and changes in working capital to arrive at cash flow from operating activities.

Financing Activities

Transactions related to raising capital and repaying investors, affecting the company's equity and long-term debt.

Free Cash Flow

The amount of cash generated by a business after accounting for capital expenditures, essential for maintaining or expanding assets.

Operating Activities

Transactions and events that relate to the principal revenue-generating activities of the company.