Cash Flows from Financing Activities, as Part of the Statement

question 136

True/False

Cash flows from financing activities, as part of the statement of cash flows, would include any payments for dividends.

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Definitions:

Accounts Receivable

Customer-incurred debts to a business for goods or services for which payment is outstanding.

Inventory Turnover

A ratio showing how often a company has sold and replaced its inventory during a certain period, indicating the efficiency of inventory management.

Return On Equity

A measure of financial performance calculated by dividing net income by shareholders' equity.

Total Debt Ratio

A financial ratio that measures the extent of a company’s leverage, calculated by dividing its total liabilities by its total assets.