Cash Flow from Operating Activities Is Often Less Stable from Year

question 107

True/False

Cash flow from operating activities is often less stable from year to year than is the amount of net income reported on the income statement.

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Definitions:

Deposit Reached

Achieving the required minimum amount of money in an account to fulfill a particular condition.

Deposit Value

The amount of money placed in an account or invested, which can earn interest over time.

Interest Rate

The fraction at which a lender charges interest to a borrower for the amount of money lent.

Investment Guaranteed

A financial product promising the return of the principal amount plus predetermined earnings, minimizing risk for the investor.