Cash Flow Signs of a Healthy Company Do NOT Include

question 47

Multiple Choice

Cash flow signs of a healthy company do NOT include:

• A)net cash provided by operating activities exceeds net income
• B)operating activities represent the major source of cash
• C)investing activities include more purchases than sales of long-term assets
• D)borrowing $100 million and repaying $15 million

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Definitions:

Bailment Contract

An agreement where physical possession of personal property is transferred from one party to another, with the understanding that the property will be returned.

Contract Frustration

A legal principle that releases both parties from their contractual obligations when an unforeseen event renders the contract physically or commercially impossible to perform.

Commission Payment

A method of remuneration for services or facilitating transactions, typically calculated as a percentage of the transaction value.

Non-refundable Deposit

A sum of money paid in advance as part of a total payment that is not returned, regardless of whether a service or product is ultimately provided.