In the Statement of Cash Flows, Cash Flows from Operating

question 118

True/False

In the statement of cash flows, cash flows from operating activities are cash flows directly related to purchase and sale of fixed assets.

---

Definitions:

Short-Term Loan

A loan scheduled to be repaid in less than a year, often used for immediate cash flow needs.

Annual Net Cash Inflow

The total amount of cash that a business generates in a year, after all expenses and taxes are subtracted from total cash inflows.

Accounts Payable Balance

The total amount of money owed by a company to its creditors or suppliers at a specific point in time.

Sales for Quarter

The total revenue generated from sales activities within a specific three-month period of the fiscal year, used to analyze the company's performance and growth.