Refer to Scenario 1-2

question 67

Multiple Choice

Refer to Scenario 1-2.All but which of the following are areas Franky should have worked upon in order to help ensure the success of his business?

• A) Plan for the future
• B) Understand that commitment and hard work are required for business success
• C) Managing finances
• D) Increased his advertising budget

---

Definitions:

Statement of Cash Flows

A financial statement that summarizes the cash inflows and outflows for a company over a period, showing how changes in balance sheet and income affect cash and cash equivalents.

Financing Activity

Activities that result in changes in the size and composition of the equity and borrowings of a company.

Operating Activity

Business actions that are directly related to the production and delivery of goods and services, which are reflected in the income statement.

Investing Activity

This refers to transactions involving the acquisition and disposal of long-term assets and other investments not included in cash equivalents.