A Financial Statement Analyst Will Look at the Cash Flow

question 158

Multiple Choice

A financial statement analyst will look at the cash flow statement for all of the following except:

• A)If cash flow is significantly larger than earnings, the company may be very conservative in its accounting practices.
• B)To determine the depreciation add back.
• C)If earnings with amortization added back are significantly larger than cash flow from operations, the company may be maximizing net income.
• D)To see if the cash flow statement excludes certain operating expenditures.