Making a Loan to Another Party Is Considered an Investing

question 75

True/False

Making a loan to another party is considered an investing activity on the statement of cash flows.

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Definitions:

Magnitudes

Quantitative measures that assign size, length, area, volume, or another metric quantity to objects or phenomena.

General Adaptation Syndrome

A three-stage response (alarm, resistance, exhaustion) that the body has to stress, proposed by Hans Selye.

Exhaustion

A state of extreme physical or mental fatigue, usually resulting from prolonged stress or activity.

Resistance

The refusal to accept or comply with something; the attempt to prevent something by action or argument.