Examlex

Solved

The Redemption of a Loan Would Appear on the Cash

question 12

Multiple Choice

The redemption of a loan would appear on the cash flow statement as a:


Definitions:

Current Ratio

A financial ratio that is computed by dividing current assets by current liabilities.

Fiscal Year

A 12-month period used for accounting purposes and preparing financial statements, which may not align with the calendar year.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term and long-term obligations, calculated as current assets divided by current liabilities.

Working Capital

The difference between a company's current assets and current liabilities, indicating the liquidity available to run its operations.

Related Questions