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true or false The first step in preparing the statement of cash flows is to determine the change in the long-term assets

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter23A: Statement Of Cash Flows: The Direct Method

Section: Chapter Questions

Problem 4RQ: Under the direct method of preparing a statement of cash flows, what adjustment is made for...

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The first step in preparing the statement of cash flows is to determine the change in the long-term assets

Definition Definition Net amount of cash that an entity receives and expends over the course of a given period. For a business to continue operating, positive cash flows are required, and they are also necessary to produce value for investors. Investors in particular prefer to see growing cash flows even after capital expenditures have been paid for (which is known as free cash flow).

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