Negative Operating Cash Flow May Indicate All of the Following

question 116

Multiple Choice

Negative operating cash flow may indicate all of the following except:

• A)the company may not be able to replace property,plant and equipment.
• B)stockholders may not receive a dividend.
• C)the company may be in the introductory phase of its life cycle.
• D)The company did not earn a profit from its core business activity.

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Definitions:

Disputes

Conflicts or disagreements arising from differing interests, values, or understandings between parties.

Cognitive Bias

Refers to the systematic pattern of deviation from norm or rationality in judgment, whereby inferences about other people and situations may be drawn in an illogical fashion.

Particular Frame

A specific perspective or point of view adopted in evaluating or analyzing a situation, which can influence perceptions and outcomes.

Secondary Concerns

Issues or considerations that are not of primary importance but may still influence outcomes or decisions.