When Auditing the Statement of Cash Flows of a Profitable,growing $\begin{array}{cc}\text {Cash flows from operations }&\text{Cash flows from investing}\end{array}$

question 78

Multiple Choice

When auditing the statement of cash flows of a profitable,growing company which combination is most likely?
$\begin{array}{cc}\text {Cash flows from operations }&\text{Cash flows from investing}\end{array}$
A- $\begin{array}{cc}\quad\quad\quad\text { Positive } &\quad\quad\quad\quad\quad\quad \text { Positive } \\\end{array}$
B- $\begin{array}{cc}\quad\quad\quad\text { Positive } &\quad\quad\quad\quad\quad\quad \text { Negative } \\\end{array}$
C- $\begin{array}{cc}\quad\quad\quad\text { Negative } &\quad\quad\quad\quad\quad\quad \text { Positive } \\\end{array}$
D- $\begin{array}{cc}\quad\quad\quad\text { Negative } &\quad\quad\quad\quad\quad\quad \text { Negative }\end{array}$

• A)Option A
• B)Option B
• C)Option C
• D)Option D

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Definitions:

Marginal Product Of Labor

The additional output a firm gains from employing one more unit of labor, holding all other inputs constant.

Demand For Labor

The total amount of workers that employers want to hire at a given wage rate and time period.

Opportunity Cost

The loss of potential gain from other alternatives when one option is chosen.

Accounting Profits

The difference between total revenue and explicit costs of a business, calculated using principles of accounting.