A Business Is an Organization in Which Basic Resources or Inputs

question 133

True/False

A business is an organization in which basic resources or inputs, like materials and labor, are assembled and processed to provide outputs in the form of goods or services to customers.

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Definitions:

Statement of Cash Flows

A financial report that provides aggregate data regarding all cash inflow and outflow a company receives from its ongoing operations and external investment sources.

Operating Activities

Involves the day-to-day actions that are taken for the main operations of a business, such as sales and purchase of goods or services, which are reflected in the cash flow from operating activities in the financial statements.

Comparative Balance Sheet

A financial statement that presents the balances of assets, liabilities, and stockholders' equity at two or more different points in time to analyze trends or changes.

Indirect Method

A method for preparing the cash flow statement that starts with net income and adjusts for non-cash transactions.