The Statement of Cash Flows Begin with Revenues; for This

question 102

True/False

The statement of cash flows begin with revenues; for this reason, analysts often refer to revenue growth as "top-line" growth.

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Definitions:

Common Stock

A form of corporate equity ownership, representing a claim on a portion of a company's assets and earnings.

Retained Earnings

The portion of net income that is kept within the company rather than distributed to shareholders as dividends, often used for reinvestment.

Net Income

The amount of profit left over after all operating expenses, taxes, and interest payments have been deducted from total revenue.

Dividend

A portion of a company's earnings distributed to shareholders, usually in the form of cash or additional stock.