The Profits of a Proprietorship Are

question 130

Multiple Choice

The profits of a proprietorship are

• A) taxed at the same rate as the owner's other personal income.
• B) subject to a corporate tax.
• C) taxed as capital gains indexed for inflation.
• D) exempt from taxation.

Understand and calculate net cash flow from financing activities.

Comprehend the structure and elements of the balance sheet equation.

Analyze and determine net cash flow from investing activities based on changes in cash balance and cash flows from other activities.

Understand the purpose and classifications of the cash flow statement.

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Definitions:

Cash Conversion Cycle

A metric that measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

Payables Deferral Period

The amount of time a company takes to pay off its suppliers after receiving goods or services, affecting its cash flow.

Daily Sales

The total revenue or amount of goods and services sold by a business within a single day.

Free Cash Flow

The amount of cash generated by a business after accounting for capital expenditures needed to maintain or expand the asset base.