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131 investing cash flows generally include cash receipts and cash payments for trans 4296666

 

131. Investing cash flows generally include cash receipts and cash payments for transactions involving revenues and expenses. 
 

132. Operating cash flows generally include cash transactions for the purchase and sale of investments and productive long-term assets. 
 

133. Financing cash flows include cash transactions with lenders, such as borrowing money and repaying debt, and with stockholders, such as issuing stock and paying dividends. 
 

134. Any transaction that affects the income statement ultimately affects the balance sheet through the balance of retained earnings. 
 

135. Financial accounting has an impact on everyday business decisions as well as wide-ranging economic consequences. 
 

136. Investors and creditors rely heavily on financial accounting information in making investment and lending decisions. 
 

137. In general, if a company's net income is increasing, so will its stock price. 
 

138. The rules of financial accounting are called Generally Accepted Accounting Principles (GAAP). 
 

139. Today, financial accounting and reporting standards in the United States are established primarily by the Financial Accounting Standards Board (FASB). 
 

140. The 1933 Securities Act and the 1934 Securities Exchange Act were designed to restore investor confidence in financial accounting following the stock market crash in 1929. 
 

 

 

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