Total asset turnover reflects a company's ability to produce net sales from total assets. All companies want a high return on total assets.

TrueFalse

All investing and financing activities affect cash flows, such as the purchase of long-term assets using a long-term note payable (loan).

TrueFalse

Operating activities: Generally include transactions and events that affect net income.

TrueFalse

Operating cash inflow examples: Cash sales to customers, collections on credit sales, receipt of dividend revenue, receipt of interest revenue.

TrueFalse

Financing activities: Generally include transactions and events that do not affect long-term liabilities and equity.

TrueFalse

Investing activities: Generally include transactions and events that come from the purchase and sale of long-term assets.

TrueFalse