The Statement of Cash Flows Calculates Cash Flows from Operations

question 178

True/False

The statement of cash flows calculates cash flows from operations, investing activities, and financing activities.

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Definitions:

Cash Disbursements

The outflow of cash for expenses, investments, and other business activities as recorded in the entity's financial records.

Variable Selling

Costs that vary directly with the volume of sales, including commissions and shipping fees.

Administrative Expense

Costs related to the general operations of a business that are not directly tied to the production of goods or services.

Cash Disbursements

Payments made in cash by a business, including expenses, debt payments, and dividend distributions.