Positive Cash Flow from Operating Activities on the Statement of Cash

question 226

Multiple Choice

Positive cash flow from operating activities on the statement of cash flows means that a company has ________.

• A)paid a large cash dividend to shareholders
• B)collected more from customers than it paid for operating expenses
• C)sold additional shares of common stock
• D)bought additional property,plant and equipment

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Definitions:

Treasury Bills

Short-term government securities issued at a discount from their face value, with maturities ranging from a few days to 52 weeks.

Collection Time

The average duration it takes for a company to collect payments owed by its customers, often measured in days.

Average Daily Receipts

The average amount of money a business receives on a day-to-day basis over a specified period.