One of the Benefits of the Statement of Cash Flows

question 44

Multiple Choice

One of the benefits of the statement of cash flows is that it helps users evaluate financial flexibility. Which of the following explanations is a description of financial flexibility?

• A) the nearness to cash of assets and liabilities
• B) the firm's ability to respond and adapt to financial adversity and unexpected needs and opportunities
• C) the firm's ability to pay its debts as they mature
• D) the firm's ability to invest in a number of projects with different objectives and costs

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Definitions:

Bicarbonate

An alkaline compound with the formula HCO3-, involved in the buffering of pH levels in the blood and other bodily fluids.

Blood Culture

A laboratory test that checks for foreign invaders like bacteria or fungi in the blood.

Bicarbonate

An alkaline compound with buffering properties, helping to maintain pH balance in various body fluids.

Hereditary Spherocytosis

A genetic condition causing red blood cells to be spherical and fragile, leading to hemolytic anemia.