On the Cash Flow Statement, the Gain on the Sale

question 58

True/False

On the cash flow statement, the gain on the sale of a delivery truck is an investing activity.

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Definitions:

Sales Proportional

A method or metric that relates a company's sales to another factor, measured in a ratio or percentage form to assess efficiency or performance.

Debt And Equity

Refers to the two primary ways of financing a company's operations and growth, through borrowing (debt) or selling ownership interests (equity).

Sustainable Growth Rate

The maximum rate at which a company can grow its sales, earnings and dividends without needing to increase equity or borrowings.

Debt-Equity Ratio

The measure of a company's financial leverage, calculated by dividing its total liabilities by stockholders' equity.