Which of the Following Statements About Cash Flows Is True

question 65

Multiple Choice

Which of the following statements about cash flows is true?

• A)All cash flows are value relevant.
• B)Only current cash flows are relevant for valuation.
• C)Cash flows are less reliable than accruals.
• D)Cash flows can be manipulated.

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Definitions:

Surface Bargaining

A term used in labor relations, referring to the practice of negotiating a contract without the intention of reaching a meaningful agreement.

Unilateral Change

Actions taken by one party, especially by an employer regarding work conditions, without agreement from the other party, such as employees or unions.

BATNA

Best Alternative to a Negotiated Agreement; the most advantageous alternative course of action a party can take if negotiations fail and an agreement cannot be reached.

Bargaining Environment

The context or setting in which negotiation between parties (e.g., employers and employees) takes place, including all influencing factors.