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What is the Rotary International's Four-Way Test?
Net Cash
The difference between a company's total cash inflows and outflows within a given period.
Investing Activities
Transactions related to the acquisition or disposal of long-term assets and investments, used to assess a company's growth projects and capital expenditure.
Net Cash
The difference between the cash inflows and outflows in a given period, indicating the net change in a company's cash position.
Financing Activities
Transactions that result in changes in the size and composition of the equity and borrowings of a company, as reflected in its cash flows.
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