Identify and Briefly Describe the Three Categories of Cash Flows

question 35

Essay

Identify and briefly describe the three categories of cash flows reported in the statement of cash flows.

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Definitions:

Cash Dividend

A payment made by a company out of its earnings to shareholders, usually in the form of cash.

Liability

Financial obligations or debts owed by a company to creditors, typically due in the near or distant future.

Declaration Date

The date on which the board of directors officially approves a dividend.

Earnings Per Share

A profitability measurement that calculates the amount of net income earned per share of stock outstanding.