Companies Sometimes Obtain Financing and Do Not Receive Cash

question 81

True/False

Companies sometimes obtain financing and do not receive cash.Although such transactions do not directly involve cash,they still must be reported in the financing section of the statement of cash flows.

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Definitions:

Composition Carbon

Likely refers to carbon composition resistors, electronic components made from carbon dust or graphite paste, used for their stable electrical resistance.

Variable Resistor

An electronic component that can adjust the flow of electrical current through it by changing its resistance.

Potentiometer

A variable resistor with a sliding contact that is used as a voltage divider.

Composition Carbon

A resistor type made from compressed carbon or graphite mixture, known for its stability and reliability in a range of electrical applications.