Figure 19-2 -Capital Is the

question 64

Multiple Choice

Figure 19-2
-Capital is the

• A)flow of new equipment that a firm acquires over the course of a year.
• B)amount of increase in a firm's equipment over a year.
• C)amount of money that a firm has on hand at a given time.
• D)stock of plant, equipment, and other productive resources held by a firm.

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Definitions:

Separate Schedule

A detailed list or report that is prepared apart from the main financial statements or documents.

Noncash Expenses

Expenses reported on the income statement that do not involve actual cash flow, such as depreciation and amortization.

Investments

Assets or items acquired with the goal of generating income or appreciating in value over time.

Indirect Method

A way of calculating cash flows for operational activities in the cash flow statement by starting with net income and adjusting for non-cash transactions.