One of the Reasons Why Cash Flow Analysis Is Popular

question 43

Multiple Choice

One of the reasons why cash flow analysis is popular is because:

• A) cash flows are more subjective than net income.
• B) cash flows are hard to understand.
• C) it is easy to manipulate, or spin the cash flows.
• D) it is difficult to manipulate, or spin the cash flows.
• E) None of these.

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Definitions:

Mental Processes

The internal, covert activities that occur in the mind, such as thinking, remembering, and reasoning.

Scientific Study

The systematic pursuit of knowledge involving the observation, identification, description, experimental investigation, and theoretical explanation of phenomena.

Behavior

The actions or reactions of an object or organism, usually in relation to the environment.

Ethical Behavior

Ethical behavior relates to actions that are consistent with what society and individuals typically think are good values, involving honesty, fairness, and integrity.