Cash Flows from Operating Activities, as Reported on the Statement

question 11

Multiple Choice

Cash flows from operating activities, as reported on the statement of cash flows under the indirect method, would include

• A)receipts from the sale of investments.
• B)net income.
• C)payments for dividends.
• D)receipts from the issuance of capital stock.

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Definitions:

Payables Turnover

A financial efficiency ratio that measures how quickly a company pays off its suppliers by comparing net purchases to average accounts payable.

Inventory Turnover

Inventory Turnover is a measure of how often a company sells and replaces its stock of goods within a certain period, indicating efficiency in managing inventory.

Cash Cycle

Cash Cycle, also known as the cash conversion cycle, measures the time it takes a company to convert resource inputs into cash flows.

Inventory Turnover

A metric that measures the efficiency of a company in managing its stock of goods through the calculation of the cost of goods sold divided by average inventory.