Analyzing the Cash Flow Statement May Help Analysts Determine the Financial

question 116

Multiple Choice

Analyzing the cash flow statement may help analysts determine the financial health of a company.Which of the following signs below is not an indicator of a financially healthy company?

• A) The company's operations are a major source (not a use) of cash.
• B) The company's operations are a major use (not a source) of cash.
• C) The company's investing activities include more purchases than sales of non-current assets.
• D) The company's financing activities are not dominated by borrowing.

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Definitions:

Self-Awareness

The awareness of one’s own personality, emotions, motivations, and wishes.

Anonymity

The state of being unnamed or unacknowledged, often used to describe situations where individuals' identities are protected or not revealed.

Deindividuation Theory

A psychological theory suggesting individuals in groups may lose self-awareness and feel less responsible for their actions, often leading to norms being disregarded.

Irrationality

The quality of acting or deciding based on emotions, flawed reasoning, or nonsensical ideas, rather than logic or rational thought.