The Information in Statement of Cash flOws Should Help Investors

question 60

Multiple Choice

The information in statement of cash flows should help investors and creditors evaluate:

• A) the company's ability to generate past cash flows.
• B) the company's ability to receive dividends and meet shareholder obligations
• C) the reasons for the difference between net liabilities and net cash provided or used by operating activities.
• D) the investing and financing transactions during the period.

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Definitions:

Competency Models

Frameworks that define the skills, knowledge, and abilities required for effective performance in a specific job or profession.

Competencies

Competencies are the skills, knowledge, and abilities that enable an individual to perform tasks effectively in a job or life situations.

Legally Defensible

Actions or decisions that are supported by law and can be justified in a court of law if challenged.

Classification Criteria

The standards or rules used to categorize or organize things into groups based on shared characteristics or qualities.