Investing Activities on the Statement of Cash Flows Generate Cash

question 87

True/False

Investing activities on the statement of cash flows generate cash inflows and outflows related to borrowing from and repaying principal to creditors and completing transactions with the company's owners such as selling or repurchasing shares of common stocks and paying dividends.

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Definitions:

Hypotonic Solution

A solution that has a lower solute concentration than the cytoplasm of a cell, causing cell swelling.

Gain Water

The process through which cells absorb water, which can happen in a hypotonic solution environment, leading to cell swelling or bursting in severe cases.

Cell

The smallest structural and functional unit of an organism, typically microscopic and consisting of cytoplasm and a nucleus enclosed in a membrane.

Turgor Pressure

The pressure of water pushing the plasma membrane against the cell wall of a plant or bacterium, providing rigidity to the cell.