Consider the Following Information Relating to Interceptors Ltd

question 24

Multiple Choice

Consider the following information relating to Interceptors Ltd. Based on the cash flow data in the table, which of the following statements is/are correct?
I. This firm appears to be a good investment because of its steady growth in cash.
II. This firm has only been able to generate growing cash flows by borrowing or selling equity to offset declining operating cash flows.
III. Financing activities have been increasingly important for this firm's operations, at least in the short run.

• A)I only
• B)II and III only
• C)II only
• D)I and II only

---

Definitions:

Social Status

The position or rank of a person or group within the hierarchy of a society, often determined by wealth, occupation, education, or family lineage.

Critical Period

A specific time in an organism's development when the exposure to certain stimuli or experiences is necessary for the organism to develop properly.

Language Acquisition Device

A hypothetical module proposed by Noam Chomsky that suggests humans have an innate ability to acquire language.

Heuristics

Mental shortcuts or simple strategies that facilitate problem-solving and decision-making.