Increases and Decreases in the Long-Term Assets Are Reported on the Statement

question 142

Multiple Choice

Increases and decreases in the long-term assets are reported on the statement of cash flows as:

• A)operating activities.
• B)investing activities.
• C)financing activities.
• D)noncash activities.

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Definitions:

Days' Sales

A financial metric that measures the average time it takes for a company to turn its inventory into sales.

Receivables

Money owed to a company by its customers from sales or services rendered, recorded as an asset on the balance sheet.

Inventory

The total amount of goods and materials held by a company, intended for sale or production.

Payables

Short for accounts payable; money owed by a company to its suppliers or creditors for products and services received but not yet paid for.