Which of the Following Are Fundamental Concepts That Nonfinancial Managers

question 68

Multiple Choice

Which of the following are fundamental concepts that nonfinancial managers need to understand?

• A)How current business conditions can affect the firm's performance.
• B)How to project financial statements and future investment needs.
• C)How capital markets work to raise long-term capital.
• D)All of the above.

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Definitions:

Liability

A financial obligation or debt that a company is required to repay to another entity in the future.

Statement of Cash Flows

A financial report that provides aggregate data regarding all cash inflows and outflows a company receives from its ongoing operations, investment activities, and financial activities over a period.

Financing Activity

Transactions involving the flow of cash between a company and its owners and creditors, including issuing stocks, paying dividends, and borrowing or repaying loans.