Which Item May Be of Concern When Analyzing Cash Flow

question 11

Multiple Choice

Which item may be of concern when analyzing cash flow from financing activities?

• A)Increasing inventories.
• B)Borrowing each year to repay debt from prior years.
• C)Repayment of debt.
• D)Payments of dividends.

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Definitions:

Fast And Frugal Heuristics

Decision-making strategies that use minimal information to make quick and efficient decisions.

Gigerenzer

A psychologist known for his work on heuristics and decision making under uncertainty.

Cognitive Power

Refers to the capacity of the brain to perform higher mental processes of reasoning, remembering, understanding, and problem-solving.

Divided Attention

The ability to process two or more responses or react to two or more different demands simultaneously.