Which of the Following Would Not Be Needed to Determine

question 78

Multiple Choice

Which of the following would not be needed to determine net cash provided by operating activities?

• A) Depreciation expense
• B) Change in accounts receivable
• C) Payment of cash dividends
• D) Change in prepaid expenses

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Definitions:

Perpetuity

A type of financial instrument that offers indefinite or endless payments to the holder, often used to represent the value of fixed interest stocks.

Compound Rate

The rate at which a sum of money grows exponentially over time, considering the reinvestment of interest or earnings.

Coupon Rate

Annually, the return rate on a bond, presented as a percentage of its nominal price.

Bond's Duration

Bond's duration measures the sensitivity of a bond's price to changes in interest rates, quantified as the weighted average time until the bond's cash flows are received.