You Should Click ____ in the Category List on the Number

question 71

Multiple Choice

You should click ____ in the Category list on the Number sheet in the Format Cells dialog box to select or create a format code.

• A) Accounting
• B) Custom
• C) General
• D) Number

Distinguish between cash inflows and outflows within each category of the statement of cash flows.

Identify the impact of changes in current assets and liabilities on cash flows from operating activities.

Recognize and differentiate between gains, sales, and losses on sales or disposals of assets and their effect on the statement of cash flows.

Understand the concept and classification of cash flows in operating, investing, and financing activities.

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Definitions:

Effective Tax Rate

The average percentage of income paid to the government in taxes, considering all deductions and credits.

Future Value

The value of a current asset at a specified date in the future based on an assumed rate of growth over time.

Deferral of Taxes

The postponement of taxes to a future period, commonly used in retirement savings plans and investment accounts.

Traditional Retirement Plan

A retirement savings plan that offers tax advantages to the saver, typically involving pre-tax contributions that grow tax-deferred until withdrawals begin at retirement.