Most Companies

question 33

Multiple Choice

Most companies

• A)use working capital and current and quick ratios as low-cost surrogates for cash flow measures.
• B)place little importance on managing current assets.
• C)have large amounts of current assets comprised of cash only.
• D)are moving away from cash flow accounting.

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Definitions:

Financial Crisis

A situation where financial assets suddenly lose a large part of their nominal value, often leading to a collapse of markets and economies.

Weakening

A term often used to describe a decline in the strength or value of an asset or currency.

Portfolio Investment

Investments in a variety of financial assets, such as stocks, bonds, and commodities, to diversify risks.

Direct Investment

Refers to buying and holding a significant amount of interest in a foreign company or investing in a manner that grants control over the operations and management.