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When a Company Issues Shares,it Reports a Cash Inflow from Financing

question 50

True/False

When a company issues shares,it reports a cash inflow from financing activities; when it repurchases shares,it reports a cash outflow for financing activities.
BT: Comprehension


Definitions:

Investment Center

A part of a company treated as a separate business, responsible for its profit and investment decisions.

Profit Center

A segment or area of a business that is directly responsible for generating profit through its operations and is assessed based on its profitability.

Investment Turnover

A measure of a company's efficiency in using its assets to generate sales or revenue, calculated as sales divided by average assets.

Return on Investment

A measure of the profitability of an investment, calculated as the ratio of net profit to initial cost.

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