The Statement of Cash Flows Is Divided into Three Separate

question 31

Multiple Choice

The statement of cash flows is divided into three separate activities - ________.

• A) profitability, stability, and investing
• B) stability, earning, and financing
• C) operating, capital, and liquidity
• D) spending, earning, and capital
• E) operating, investing, and financing

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Definitions:

Dividends Per Share

The amount of declared dividends for every share of common stock, indicating the dividend payout to shareholders.

Return On

generally starts a financial metric indicating the efficiency of an investment or comparing the efficiency of several investments, measuring profit in relation to capital invested.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities, often referred to as shareholders' equity.

Common Stockholders' Equity

The portion of a corporation's equity that belongs to holders of its common shares, consisting of capital invested by the shareholders plus retained earnings.