Financing Activities Include Receiving Cash from Issuing Debt and Receiving

question 150

True/False

Financing activities include receiving cash from issuing debt and receiving cash dividends from investments in other companies' stocks.

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Definitions:

Inventory Count

A physical count of products or materials a company has in stock, typically conducted periodically to ensure inventory records match actual stock levels.

Gross Profit Method

An accounting technique used to estimate the amount of ending inventory and cost of goods sold, based on the gross profit margin.

Ending Inventory

The total value of all unsold goods and materials that a company holds at the end of an accounting period.

Gross Profit on Sales

The difference between sales revenue and the cost of goods sold before deducting overheads, taxes, or interest.