Cash Flows from Operating Activities Correspond to the Cash Effects

question 107

Short Answer

Cash flows from operating activities correspond to the cash effects of items that determine ____________________.

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Definitions:

Stock Split

A corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares, although the overall value of the company does not change.

Retained Earnings

Retained Earnings represent the cumulative amount of net income earned by a company that is reinvested in the business, not distributed to shareholders as dividends.

Cumulative Preferred Stock

A type of preferred stock where dividends accumulate if not paid in a given period and must be paid out before dividends to common stockholders.

Cash Dividend

A payment made by a company out of its earnings to shareholders in the form of cash.