Which One of the Following Is an Important Reason to Evaluate

question 62

Multiple Choice

Which one of the following is an important reason to evaluate a company's cash flow?

• A)Without positive cash flows, a company is unable to recognize a positive net income.
• B)Minimum cash balances must be maintained by all companies.
• C)Stockholders want to know that the company can generate cash consistent with earning a reasonable return on their investments.
• D)Creditors want to be assured that the company has significant cash inflows from financing activities.

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Definitions:

Extinct

A term used to describe a species that no longer exists anywhere on Earth.

North America

A continent in the Northern Hemisphere and almost entirely within the Western Hemisphere, including countries such as the USA, Canada, and Mexico.

Height

The measurement of an individual from the foot to the top of the head when standing upright.

Ethnicity

This term, rooted in the Greek word ethnikos ("nation") and related to ethnos ("custom"), is the expression for the set of cultural ideas held by an ethnic group.