What Is the Proper Order for the Different Categories of Cash

question 42

Multiple Choice

What is the proper order for the different categories of cash flows reported on the statement of cash flows?

• A)financing activities,investing activities,and operating activities
• B)operating activities,investing activities,and financing activities
• C)operating activities,financing activities,and investing activities
• D)investing activities,financing activities,and operating activities

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Definitions:

Expected Return

The anticipated average return on an investment, factoring in the probabilities of each potential outcome.

Expected Rate of Return

The anticipated average rate of return on an investment over a specified period.

Variance

The statistical measure of the dispersion of a set of data points, often used to quantify risk or volatility in financial contexts.

Sharpe Ratio

A measure used to evaluate the risk-adjusted return of an investment portfolio.