Indicate Whether Each of the Following Statements Is True or False

question 44

Short Answer

Indicate whether each of the following statements is true or false.
_____ a)It is possible for a growing business to have substantial earnings,but yet be short of cash.
_____ b)It is possible for a well-established business to report large operating losses,but have positive cash flow from operating activities.
_____ c)A merchandising firm adding new stores must report the additional inventory purchases as investing activities.
_____ d)When equipment is bought to replace old equipment,the transaction is reported as an operating activity.
_____ e)FASB requires companies to disclose significant investing and financing activities even if these transactions do not affect cash.

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Definitions:

Associative Learning

The process by which an individual learns the connection between two stimuli, or a behavior and a stimulus, through conditioning.

Genetic Predispositions

The inherited genetic patterns that influence the likelihood of developing certain diseases or traits.

Blink

A reflex that closes and then opens the eyelids quickly to help lubricate and protect the eye.

Puff of Air

A stimulus often used in psychological experiments to trigger a blink reflex or measure reactions, typically by delivering a quick burst of air towards the eye.