A Statement That a Trailer Has a Capacity of 3,000

question 15

True/False

A statement that a trailer has a capacity of 3,000 pounds would be treated as an affirmation of fact and would become a warranty.

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Definitions:

Cash Flow

The net amount of cash and cash-equivalents being transferred into and out of a business.

Marketable Securities

Financial instruments that can be easily converted into cash, such as stocks or bonds.

Operating Activities Section

A component of the cash flow statement showing cash inflows and outflows related to the primary business activities.

Direct Method

A way of preparing a cash flow statement where actual cash flows from operating activities are listed directly.