Most Operating Transactions Do Not Use or Generate Cash

question 56

True/False

Most operating transactions do not use or generate cash.

---

Definitions:

Net Working Capital

A measure of a company's liquidity, efficiency, and overall financial health, calculated by subtracting current liabilities from current assets.

Variable Costs

Costs that change in proportion to the level of activity in a business.

CCA Class

Capital Cost Allowance Class; categories used in Canadian tax law to determine the depreciation rate for tax purposes on tangible and intangible assets.

Depreciation Expense

An accounting method that allocates the cost of a tangible asset over its useful life to account for the decline in its value over time.