Value is created and recognized over time if:
A) cash raised is invested in the investment activities of the firm.
B) funds are raised in the capital markets.
C) cash paid to investors, shareholders and bondholders, is greater than cash raised in the financial markets.
D) management pursues activities to reduce taxes to zero.

Question

Quizplus · Accepted Answer

Value is created when the cash returned to investors exceeds the cash raised, indicating that the firm's investments have generated a positive return.

Value Is Created and Recognized Over Time If