ACTIVITY RATIO Definition

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ACTIVITY RATIO is any accounting ratio that measures a firms ability to convert different accounts within their balance sheets into cash or sales.

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TOTAL CASH FROM INVESTING shows a firms' cash inflows and outflows related to the purchase and sale of investments. Net investment cash flow equals the total cash inflows less the cash outflows from the section and can be a positive or negative number. There can be many types of investments in the investment cash flows section that affect net investment cash flow.

RECOURSE NOTE is a note where the default may result in loss of collateral and also personal suit and judgment. Most notes are recourse notes.

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