The First Major Section of a Typical Statement of Cash

question 7

True/False

The first major section of a typical statement of cash flows is "Operating Activities," and the first entry in this section is "Net Income." Then,also in the first section,we show some items that represent increases or decreases to cash,and the last entry is called "Net Cash Provided by Operating Activities." This number can be either positive or negative,but if it is negative,the firm is almost certain to soon go bankrupt.

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Definitions:

Unconditioned Response

An automatic, innate reaction to a stimulus that occurs without prior conditioning or learning.

Negatively Reinforced

A behavior strengthened because a negative condition is removed or avoided as a consequence of the behavior.

Positively Punished

The addition of an unpleasant stimulus in response to a behavior, resulting in a decrease in the likelihood of that behavior being repeated.

Negatively Punished

A term in behavioral psychology referring to the decrease in the frequency of a behavior due to the removal of a pleasant stimulus following the behavior.