Why Is the Operating Activities Section Often Believed to Be

question 89

Multiple Choice

Why is the operating activities section often believed to be the most important part of a statement of cash flows?

• A) It gives the most information about how operations have been financed.
• B) It shows the dividends that have been paid to shareholders.
• C) It indicates a company's ability to generate cash from sales to meet current cash needs.
• D) It shows the net increase or decrease in cash during the period.

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Definitions:

Ethical Negotiating

The practice of engaging in negotiations with honesty, integrity, and respect for all parties involved, aiming for solutions that are fair and beneficial.

Marginally Ethical

Actions or decisions that are just barely within the bounds of accepted moral or ethical standards.

Ambiguous Negotiating

Involves discussions or bargaining processes where terms, conditions, or outcomes are not clearly defined or are open to interpretation.

Ethical Tactics

Strategies that adhere to moral principles and upright standards of conduct.