Quiz – T/F: The first major section of a typical statement of cash flows is “Operating Activities”

Fundamentals of Financial Management, Concise

Brigham and Houston

09th Edition and 10th Edition

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The first major section of the statement of cash flows is "Operating Activities," and the first item in this section is "Net Income." We also show some items that represent increases or decreases to cash, and the last entry is called "Net Cash Provided by Operating Activities." If this figure is negative, then the firm is almost certain to soon go bankrupt.

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