For a Company to Survive in the Long-Run It Must

question 157

True/False

For a company to survive in the long-run it must have positive cash flows from investing activities.

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Definitions:

Owner's Equity

The residual interest in the assets of a company after subtracting liabilities, often referred to as shareholder's equity in a corporation.

Liabilities

Financial obligations or debts that a company or individual owes to others.

Asset

A resource with economic value that an individual, corporation, or country owns or controls with the expectation that it will provide future benefit.

General Ledger

A record of all financial transactions divided into accounts and usually compiled at the end of each month.