Of the Three Types of Business Activities Reported on a Statement

question 58

True/False

Of the three types of business activities reported on a statement of cash flows-operating, investing, and financing-financing activities are the most important when evaluating a business that is up and running.

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Definitions:

Preferences

In economics, this refers to the subjective tastes and likes of individuals, which influence their choices among various goods and services.

Prices

The financial amount expected, required, or supplied as remuneration for an item.

Income

Money received on a regular basis from work, property, investments, business ventures, and other sources, used to fund consumption and savings.

Laspeyres Index

A price index used to measure the change in the cost of purchasing a fixed basket of goods and services of the same type and quantity over time.