Advantages of Credit Use Include Increased Protection Against Rip-Offs and Frauds

question 124

True/False

Advantages of credit use include increased protection against rip-offs and frauds.

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Definitions:

Financing Activities

Transactions that result in changes in the size and composition of the equity capital or borrowings of an entity.

Operations

Refers to the ongoing activities of a business that are involved in the production and distribution of products or services.

Indirect Method

A method of reporting cash flows from operating activities by adjusting net income for changes in non-cash accounts.

Direct Method

A way of preparing the cash flow statement where actual cash flow information from the company's operations is used.