The Third Section Presented on the Statement of Cash Flows

question 17

True/False

The third section presented on the statement of cash flows is the non-cash operating activities section.

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Definitions:

Residual Dividend Policy

A strategy where dividends are paid out from the residual or leftover equity after all necessary operating expenses and working capital needs are met.

Investment Needs

The financial goals or objectives that require the allocation of capital in securities or assets.

Dividends

Regular payments made by a corporation to its shareholders out of its profits or reserves.

Regular Cash Dividend

A payment made to shareholders from a company's earnings on a routine basis.