A Change in the _________________________ or _________________________ Will Not Change

question 74

Short Answer

A change in the _________________________ or _________________________ will not change a preset series of cash flows,however it will change the present value of those cash flows.

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Definitions:

Indirect Method

A way of calculating cash flows in the cash flow statement, where net income is adjusted for changes in balance sheet accounts to reflect cash transactions.

Voting Stock

Shares of a corporation that give the shareholder the right to vote on matters of corporate policy and on the selection of the board of directors.

Cash Dividend

A disbursement from a corporation to its stockholders, typically coming from its earnings.

Net Income

The ultimate earnings of a company, arrived at by reducing its revenues by all incurred expenses and taxes.