The Information in Statement of Cash Flows Should Help Investors

question 26

Multiple Choice

The information in statement of cash flows should help investors and creditors evaluate:

• A) the company's ability to collect dividends and pay obligations.
• B) the reasons for the difference between net liabilities and net cash provided or used by operating activities.
• C) the investing and financing transactions during the period.
• D) the company's ability to generate past cash flows.

Understand the different markets where firms raise financial capital.

Recognize the purpose and function of indexes in financial markets.

Identify the characteristics and differences between major stock exchanges.

Comprehend the role of investment banking firms in assisting corporations to sell securities in the primary market.

---

Definitions:

Economic Security

The state of possessing a consistent income or other means to maintain a current lifestyle and anticipate similar stability moving forward.

Federal Government

The national government of a federal country, where powers are divided between the central authority and constituent political units, such as states or provinces.

Share Our Wealth

A program proposed by Senator Huey Long during the Great Depression that aimed to redistribute wealth in the United States.

Confiscate Wealth

The act of a government or authority legally taking private property, often for public use or as a penalty for legal violations.