Dividends Collected from a Long-Term Investment Are Cash Flows from Investing

question 83

True/False

Dividends collected from a long-term investment are cash flows from investing activities.

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Definitions:

GAAP

Generally Accepted Accounting Principles; a common set of accounting principles, standards, and procedures that companies must follow when they compile their financial statements.

Erosion Cost

Costs that occur when the introduction of a new project reduces sales and profits of existing products.

Depreciation Expense

The allocation of an asset's cost over its useful life, reflecting the decrease in value of tangible assets.

Operating Cash Flows

Cash generated from a company's regular business operations, excluding financing or investment-related cash flow.