Customer Lifetime Value (CLV) Describes the Net Present Value of the Stream

question 9

True/False

Customer lifetime value (CLV) describes the net present value of the stream of future profits expected over the customer's lifetime purchases.

---

Definitions:

Statement of Cash Flows

A financial statement that outlines the cash inflows and outflows from operating, investing, and financing activities, helping to assess a company's liquidity.

Accounts Receivable

The money owed to a company by its customers for products or services that have been delivered but not yet paid for.

T Account

A T Account is a visual representation of a ledger account, typically used in accounting to track the debit and credit balances of an account.

Common Stock

Represents ownership shares in a corporation, giving holders voting rights and a residual claim on the company's assets and earnings.