When Auditing the Statement of Cash Flows of a Profitable,growing

question 38

Multiple Choice

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

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

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Definitions:

Price

The amount of money required to purchase a product or service.

Consumer Surplus

The discrepancy between what consumers are prepared and capable of paying for a product or service and what they end up actually paying.

Willing To Pay

The maximum amount a consumer is prepared to spend on a good or service, reflecting the perceived value or utility gained from the purchase.

Ticket

A token or voucher that entitles the holder to admission to an event, activity, or service.