For a Statement of Cash Flows, Firms Are Required to Classify

question 33

True/False

For a statement of cash flows, firms are required to classify their cash activities into three categories: operating, investing, and borrowing.

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Definitions:

Electronic Cash Registers

Machines or systems used at retail checkout points to calculate and record sales transactions, accept payments, and store cash.

Designated Personnel

Individuals who are specifically chosen or assigned to carry out particular tasks or responsibilities.

Cash Receipts

The actual money received during a given period, including all forms of payment such as cash, checks, and credit card payments.

Establishment Of Responsibility

An accounting principle that ensures specific duties are assigned to individuals to increase accountability and prevent errors and fraud.