In the decline phase, the company continues to enjoy positive operating cash flows but stops spending cash on investing activities and instead uses its cash for financing activities such as repaying lenders and returning excess cash to shareholders.
Answer the following statement true (T) or false (F)
False
In the maturity phase, the company continues to enjoy positive operating cash flows but no longer has opportunities for expanding the business, so it stops spending cash on investing activities and instead uses its cash for financing activities such as repaying lenders and returning excess cash to shareholders. During the decline phase, a company's operating cash flows again become negative, prompting lenders to demand repayment of loans (i.e., negative financing cash flows). To fund these repayments, the company sells off its long-term assets, resulting in significantly positive investing cash flows.
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Under the historical cost principle, assets are recorded at their original cost
Indicate whether the statement is true or false
Autumn calls the most reputable plumber in the community to repair the faucet in her kitchen. She pays the plumber for his work. However, the next day, Autumn sees the faucet leaking again and is stunned to see the repair was done with a strip of duct tape. This reaction from Autumn can be attributed to a(n)
A. services cape. B. faulty service agreement. C. procedural fairness. D. service gap. E. motivational guide.
A centralized business organization is one in which all major planning and operating decisions are made by top management
Indicate whether the statement is true or false
Agency bonds are issued by
A) state and local government welfare agencies. B) regional agencies of multinational corporations. C) the U.S. Treasury. D) agencies of the federal government.