BUISENESS MANAGEMENT
FINANCIAL MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Gross profit is the first item on a cashflow statement
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Repayment of debt does not lead to a change in equity
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The ROI per definition tells investors how to deal with employee costs
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Equity on a balance sheets always equals all assets
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Detailed explanation-1: -Answer and Explanation: Explanation: Stock does not represent a form of debt finance. Stocks are an equity investment.
Detailed explanation-2: -Debt financing involves the borrowing of money whereas equity financing involves selling a portion of equity in the company. The main advantage of equity financing is that there is no obligation to repay the money acquired through it.
Detailed explanation-3: -In the Statement of Cash Flows, financial flows are cash flows that result from debt and equity transactions, including incurrence and repayment of debt, cash inflows from the sale of shares and outflows of cash for repurchase of shares or payment of cash dividends.
Detailed explanation-4: -Grants and scholarships are funds that do not need to be repaid, and may be offered by government agencies, nonprofit organizations, or for-profit companies.