Operating Activities Include Long-Term Borrowing and Repaying Cash from Lenders

question 195

True/False

Operating activities include long-term borrowing and repaying cash from lenders and cash investments by owners or dividends to the owner.

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Definitions:

Normal Good

A type of good for which demand increases as the income of individuals or the economy grows.

Substitution Effect

The substitution effect occurs when consumers replace more expensive items with less costly alternatives.

Income Effect

A change in the quantity demanded of a good or service as a result of a change in real income (purchasing power).

Inferior Good

A type of good for which demand declines as the income of individuals or the economy increases, opposite to normal goods.