Companies Sometimes Make Investments That Do NOT Require Cash

question 43

True/False

Companies sometimes make investments that do NOT require cash. Such transactions are called noncash investing activities and appear in a separate section of the cash flow statement.

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Definitions:

Strategies

Plans of action designed to achieve a long-term or overall aim by navigating challenges and utilizing resources effectively.

Plan

A detailed proposal for doing or achieving something, often presented as a course of action or strategy.

Orderly Steps

Methodical and organized sequences of actions taken to achieve a specific goal.

Clarify

To make a statement or situation less confused and more comprehensible.