A Company's Main Source of Cash Should Be

question 110

Multiple Choice

A company's main source of cash should be:

• A)operating activities.
• B)financing activities.
• C)investing activities.
• D)noncash investing and financing activities.

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Definitions:

Installment Sales Method

The installment sales method is an accounting technique used to recognize revenue and income on sales made through installment payments over time.

Intraperiod Tax Allocation

The process of allocating income taxes within a single financial reporting period, dividing the total tax expense among different parts of the financial statements.

Extraordinary Gain

Profits that arise from events that are unusual, infrequent, and not expected to recur in the foreseeable future.

Accounting Principles

Guidelines and rules that govern the process of reporting financial information and preparing financial statements.