The Financing Section of the Statement of Cash Flows Involves

question 102

True/False

The financing section of the statement of cash flows involves transactions relating to the equity accounts and the long-term liability accounts.

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Definitions:

Stockholders

Individuals or entities that own shares in a corporation, giving them ownership interest.

Creditors

Individuals or institutions that lend money or extend credit, and are thus owed repayment by the borrower or debtor.

Just-In-Time Inventory

An inventory strategy companies employ to increase efficiency and decrease waste by receiving goods only as they are needed in the production process.

Inventory Levels

A measure of the quantity of goods and materials on hand in a business at any given time.