There Are Two Ways to Format Operating Activities on the Statement

question 39

True/False

There are two ways to format operating activities on the statement of cash flows.

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Definitions:

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including both material and labor costs.

Inventory

The total amount of goods and materials held by a business for the purpose of resale, manufacturing, or repair.

Purchases Discount

A reduction in the price of goods that a buyer can avail of for making early payments to the supplier.

Yearly Savings Rate

The percentage of an individual's or household's income that is saved rather than spent over the course of a year.