How Do Financial Analysts Refer to Earnings That Correspond Closely

question 38

Multiple Choice

How do financial analysts refer to earnings that correspond closely to cash flows?

• A)Cash flow per share
• B)High quality earnings
• C)Earnings determined on a cash basis
• D)Low quality earnings

---

Definitions:

Present Value

Today's value of a future monetary sum or cash flow sequence, determined using a predefined rate of return.

Future Cash Flows

The projected cash earnings or revenues a company expects to receive from its operations or investments in the future.

Guaranteed Rate

A fixed interest rate promised on an investment or loan, ensuring stability over its duration.

Special Account

A unique account used for specific or unusual transactions, not covered by general financial categories.