Generally the Most Important Category on the Statement of Cash

question 12

Multiple Choice

Generally the most important category on the statement of cash flows is cash flows from

• A) operating activities.
• B) investing activities.
• C) financing activities.
• D) significant noncash activities.

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Definitions:

Salvaged

The recovery of value from an asset that has been damaged, discarded, or no longer useful in its original form.

Depreciation Tax Shield

A reduction in taxable income resulting from the allowance for depreciation expenses, which ultimately decreases tax liabilities.

Tax Rate

The percentage at which an individual or corporation is taxed, which can be applied to income, property, sales, and other taxes.