Entities Are Further Designed with Attributes

question 3

True/False

Entities are further designed with attributes.

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Definitions:

Investing Activities

Investing activities involve the purchase and sale of long-term assets and other investments, not including cash equivalents, as part of a company’s capital allocation strategy.

Short-term Investments

Assets that are expected to be converted into cash, sold, or consumed within one year or within the business cycle, whichever is longer.

Cash Dividends

Payments made by a corporation to its shareholders out of its profits or reserves.

Quality of Income Ratio

A measure that compares cash flow from operating activities to net income, indicating the quality of a company's earnings.