Management Never Uses the Statement of Cash Flows to Determine

question 123

True/False

Management never uses the statement of cash flows to determine whether short-term financing is necessary to pay current liabilities.

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Definitions:

Margin

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

Turnover

A measure of a company's sales or revenues relative to the average value of its assets, inventory, or employees.

Return on Investment

A measure of the financial gain or loss on an investment relative to the amount of money invested.

Operating Assets

Assets used by an organization in its day-to-day operations to generate revenue, excluding investments and inventory.