Match These Terms with Their Correct Definition

question 66

Multiple Choice

Match these terms with their correct definition.
-provides information that can be used to judge a company's ability to meet its obligations and pay dividends

• A)cash flow adequacy ratio
• B)cash flows from financing activities
• C)cash flows from investing activities
• D)cash flow from operating activities
• E)direct method
• F)free cash flow
• G)income statement
• H)indirect method
• I)noncash investing & financing activities
• J)statement of cash flows

---

Definitions:

Work Cells

An arrangement of resources in a manufacturing environment to improve efficiency by having all necessary equipment and materials in close proximity.

JIT Partnerships

Collaborative relationships between suppliers and companies to ensure just-in-time delivery of inventory, reducing waste and improving efficiency.

Small Lot Sizes

The production strategy that involves manufacturing smaller quantities of items to reduce inventory levels and respond quickly to customer demands.

Diversification

Diversification is a risk management strategy that involves spreading investments across various financial instruments, industries, or other categories to minimize risk.