Increases and Decreases in Long-Term Liabilities and Owners' Equity Are

question 104

True/False

Increases and decreases in long-term liabilities and owners' equity are reported in the investing activities section of the cash flow statement.

---

Definitions:

Shortage Costs

Expenses incurred when demand exceeds supply, including lost sales and the cost of expedited orders or production to meet demand.

Restrictive Financing Policy

A financial strategy that involves maintaining lower levels of current assets or using more short-term financing to fund those assets, aiming to reduce costs but increase risk.

Cumulative Cash Surplus

The total amount of cash that a business has generated over a certain period, after accounting for all cash inflows and outflows.