Asked by Aerial Johnson on Jul 08, 2024
Verified
Long-term debt reduction represents an increase in cash.
Long-term Debt
Loans or other forms of debt that have a repayment period of more than one year.
Cash Increase
An increase in a company's cash flow, resulting from its operational, investing, or financial activities.
- Analyze how various financial activities affect a firm's cash flow.
Verified Answer
RH
Rubaet HossainJul 10, 2024
Final Answer :
False
Explanation :
Long-term debt reduction represents a cash outflow, as it involves paying down debt, which decreases cash balances.
Learning Objectives
- Analyze how various financial activities affect a firm's cash flow.