The Statement of Cash Flows Helps Analysts Evaluate All but Which

question 129

Multiple Choice

The statement of cash flows helps analysts evaluate all but which of the following?

• A) Source of cash used for debt repayments.
• B) Differences between net income and net operating cash flow.
• C) Ability of the company to generate profit.
• D) Source of cash used to finance investing activities.
• E) Source of cash used for plant expansion.

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Definitions:

Sales Revenue

The total income generated from the sale of goods or services before any expenses are subtracted.

Cost of Goods Sold

The immediate expenses associated with producing a company's sold merchandise.

Stock Dividend

A distribution of extra shares instead of cash to shareholders, which raises the total share count they possess.

Net Income

The amount of money a business keeps as profit after all expenditures, taxes, and costs are deducted from its aggregate revenue.