Business Activities That Generate or Use Cash Are Classified as Operating

question 200

True/False

Business activities that generate or use cash are classified as operating, investing, or financing activities on the statement of cash flows.

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Definitions:

Long Run

A period of time in which all factors of production and costs are variable, allowing all aspects of an enterprise to be adjusted.

Appreciates

When the value of an asset, currency, or commodity increases in value over time in relation to other forms of currencies or commodities.

Peso

The currency used by several countries in Latin America, as well as the Philippines.

Hotel Room

A single unit of accommodation in a hotel, typically including a bed and bathroom, offered to guests for temporary stays.