Changes in Non-Current Liabilities and Equity in the Balance Sheet

question 7

Multiple Choice

Changes in non-current liabilities and equity in the balance sheet appear in the statement of cash flows under:

• A) the reconciliation of operating profit with cash flow from operating activities.
• B) operating activities.
• C) investing activities.
• D) financing activities.

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Definitions:

Fixed Asset Turnover

A financial ratio that measures a company's ability to generate net sales from its fixed-asset investments, such as property, plant, and equipment.

Favorable Trend

A pattern or movement in financial metrics indicating positive progress or improvement.

Unfavorable Trend

A pattern or movement in financial or operational data that suggests a negative direction, potentially indicating problems.

Trade-In Allowance

The amount a seller provides to a buyer towards the purchase of a new item by trading in an older model.