The Information in a Statement of Cash Flows Helps Investors

question 81

True/False

The information in a statement of cash flows helps investors and creditors assess the company's ability to pay dividends and meet obligations.

---

Definitions:

Direct Marketing Channel

A distribution approach where businesses market and sell products directly to consumers without intermediaries.

Intermediaries

Entities or people who act as middlemen in the distribution channel between producers and consumers, facilitating the sale of products.

Buyer and Seller

The two parties involved in a transaction where goods or services are exchanged for money or other compensation.

Prime Effect

A cognitive bias where an individual's exposure to a stimulus influences their response to a subsequent stimulus, without conscious guidance or intention.