The First Major Section of a Typical Statement of Cash

question 7

True/False

The first major section of a typical statement of cash flows is "Operating Activities," and the first entry in this section is "Net Income." Then,also in the first section,we show some items that represent increases or decreases to cash,and the last entry is called "Net Cash Provided by Operating Activities." This number can be either positive or negative,but if it is negative,the firm is almost certain to soon go bankrupt.

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Definitions:

Standard of Care

The level of competence, caution, and attention expected of an individual in a specific situation, often used in legal contexts concerning negligence.

Duty of Care

The legal obligation to avoid acts or omissions which could foreseeably harm others.

Negligence

A failure to exercise the care that a reasonably prudent person would exercise in similar circumstances, leading to harm or damage.

Professional Designation

A formal certification demonstrating a certain level of expertise or specialization in a particular field, frequently required in professions such as law, medicine, and accounting.