The Statement of Cash Flows Shows the Effects on Cash

question 86

True/False

The statement of cash flows shows the effects on cash of a company's operating, investing, and financing activities.

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Definitions:

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against an asset since it was placed in service, reflecting its loss of value over time.

Property Plant

Property, Plant, and Equipment (PP&E) are fixed assets including buildings, machinery, and equipment that are owned and used by a company for operations and not for immediate sale.

Corporate Office

The central or main office of a company where key administrative and executive activities occur.

Long-term Investments

Investments made to be held for more than a single fiscal year, which might include bonds, stocks, or real estate.