A Company with Healthy Cash Flows from Operating Activities Is

question 161

True/False

A company with healthy cash flows from operating activities is in a good position to repay its debts.

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Definitions:

Contingent Consideration

Payment in an acquisition that is dependent on specific future events possibly occurring, such as meeting performance targets.

Contingent Consideration

An additional payment that the buyer agrees to make to the seller in a business acquisition, which is dependent on specific future events or performances.

Fair Value

An estimate of the price at which an asset or liability could be exchanged between knowledgeable, willing parties in an arm's length transaction.

Liability

A financial obligation or debt owed by a company to another entity.