In Addition to the Interest Earned on a Bond, It

question 55

True/False

In addition to the interest earned on a bond, it is also possible that the actual bond will increase in value over time.

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Definitions:

Statement of Cash Flows

A financial report that summarizes the amount of cash and cash equivalents entering and leaving a company.

Operating Activities

Activities directly related to the primary business operations, including revenue generation and expenses directly tied to the core business functions.

Indirect Method

A way of calculating cash flows from operating activities by adjusting net income for changes in non-cash accounts.

Cash Dividends

A distribution of a company's earnings to its shareholders in the form of cash.