Long-Term Liabilities Are a Component of the "Capital Structure" of a Company

question 72

True/False

Long-term liabilities are a component of the "capital structure" of a company.

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Definitions:

Indirect Method

A technique used in cash flow statements where net income is adjusted for non-cash transactions and changes in working capital to calculate cash flow from operating activities.

Income Statement

An Income Statement is a financial document that shows a company's revenues and expenses, leading to net profit or loss over a specific period.

Balance Sheet

An accounting report that presents the value of a corporation's assets, obligations, and equity of its investors as of a particular moment.

Operating Activities

Activities that involve the primary operations of a company, such as selling products and providing services.