A Financial Statement Analyst Will Look at the Cash Flow

question 150

Multiple Choice

A financial statement analyst will look at the cash flow statement for all of the following except:

• A) If earnings with amortization added back are significantly larger than cash flow from operations, the company may be maximizing net income.
• B) If cash flow is significantly larger than earnings, the company may be very conservative in its accounting practices.
• C) To see if the cash flow statement excludes certain operating expenditures.
• D) To determine the depreciation add back.

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Definitions:

Main Power Lines

The primary electrical transmission and distribution lines carrying high voltage electricity from power plants to substations before distribution to consumers.

Fault Relay Contact

An electrical switch that opens or closes in response to a fault condition, used for safety or control in electrical circuits.

Processor Malfunction

An error condition in which the CPU of a computer or industrial control system fails to operate correctly.

Input Address

The unique identifier used in PLC (Programmable Logic Controller) programming and other computer systems to specify the location of an input signal or data.