Cash Received on the Sale of Equipment Would Be Considered

question 67

True/False

Cash received on the sale of equipment would be considered a financing activity on a statement of cash flows.

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Definitions:

Financial Crisis

A significant disruption in the flow of funds within financial markets and institutions, leading to a severe decline in asset values and liquidity, often resulting in a recession.

Economies of Scale

The cost advantages that enterprises obtain due to their scale of operation, resulting in reduced costs per unit of output.

Chain Retailers

Retail businesses that operate multiple outlets under the same brand or ownership, offering consistent products and services across locations.

Dodd-Frank Wall Street

A comprehensive set of financial regulations passed in 2010 in response to the 2008 financial crisis, aimed at reducing risks in the U.S. financial system.