In Using the Statement of Cash Flows to Obtain an Understanding

question 16

Multiple Choice

In using the statement of cash flows to obtain an understanding of a profitable,growing company,which of the following would ordinarily be least surprising to an auditor?

• A)Decreases in accounts payable.
• B)Decreases in accounts receivable.
• C)Negative cash flows from investing.
• D)Negative operating cash flows.

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Definitions:

High Cholesterol

A condition characterized by elevated levels of cholesterol in the blood, which can lead to cardiovascular disease.

Unsalted Cashews

Cashew nuts that have not been treated with salt, often preferred for their natural flavor or health considerations.

Pure Irish Butter

A type of butter made from the milk of grass-fed cows in Ireland, known for its rich flavor and higher fat content than regular butter.

Full Liquid Diet

A diet that consists only of liquids or foods that turn to liquid at room temperature, designed for medical purposes.