All of the Following Might Be Used to Evaluate Cash

question 214

Multiple Choice

All of the following might be used to evaluate cash flow performance,except:

• A)the absolute amount of cash flow.
• B)whether cash flow is positive or negative.
• C)the relationship between net income and cash flow.
• D)the trend in sales and operating expenses.

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Definitions:

Operating Activities

The day-to-day actions that involve the production, sales, and delivery of a company's product or service, generating most of the company's cash flows.

Price/Earnings Ratio

A valuation ratio of a company's current share price compared to its per-share earnings, indicating the dollar amount investors will pay for $1 of earnings.

Investors

Individuals or entities that allocate capital with the expectation of receiving financial returns.

Global Event Factors

External events and developments that can influence financial markets and economic conditions worldwide, including political, environmental, and economic changes.