When the Cash Flows from Operating, Investing, and Financing Activities

question 66

True/False

When the cash flows from operating, investing, and financing activities are combined to arrive at the overall net change in cash, a net decrease in cash is subtracted from the beginning cash to calculate the ending cash balance.

---

Definitions:

Capacity Utilization Rate

The capacity utilization rate measures the proportion of potential economic output that is actually realized, displayed as a percentage.

Great Recession

The period of global economic decline observed during the late 2000s, considered the most significant downturn since the Great Depression.

Capacity Utilization Rate

A metric that measures the proportion of potential economic output that is actually realized.

Net Investment

The total spent on new capital assets (capital expenditure) minus depreciation. It reflects the increase in the value of an entity's assets.