A Company Reports the Following Information from the Statement of Cash

question 116

Multiple Choice

A company reports the following information from the statement of cash flows: Which line item provides a signal that the company may have cash flow problems?

• A)net cash provided by operating activities
• B)net income
• C)net cash used by investing activities
• D)net cash used by financing activities

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Definitions:

Cost of Lost Sales

The potential revenue lost when a business cannot meet customer demand due to inventory shortages or other operational failures.

Transportation Service

Services that provide the movement of people or goods from one location to another, utilizing various modes such as trucks, ships, airplanes, or trains.

Logistics Cost Centers

Areas within a company's logistics operation that are responsible for specific expenses, helping in budgeting and financial tracking.

Least Cost Analysis

A method used to minimize costs of achieving a specific objective, commonly used in decision-making for choosing the most cost-effective option.