The Summation of the Operating, Investment, and Financing Cash Flows

question 65

Multiple Choice

The summation of the operating, investment, and financing cash flows for a stated period of time must equal which one of the following for the same time period?

• A)net income
• B)total assets
• C)ending cash balance
• D)change in the cash balance
• E)taxable income

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Definitions:

Combined Margin

A financial metric that combines various margins (gross, operating, net) to provide insight into a company’s profitability.

Return On Investment

A criterion for measuring the success or financial gain of an investment, by calculating the ratio of net profit to the investment's price.

Margin

The difference between the selling price of a product and the cost associated with producing it.

Margin

The difference between the selling price of a product or service and its cost, usually expressed as a percentage of the selling price.