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:

Team Members

Individuals who are part of a group working together towards a common purpose or project.

In-Group

A social group to which a person psychologically identifies as being a member, often in contrast to the "out-group."

More Favourable

Relates to conditions or outcomes that are better or more beneficial than others.

Performance Evaluations

A systematic process by which an organization assesses an individual employee's job performance and productivity, often used to inform decisions about promotions, salary adjustments, and training needs.