On a Statement of Cash Flows, Which of the Following

question 107

Multiple Choice

On a statement of cash flows, which of the following is a sign of a healthy company?

• A)Investing activities include more sales of long-term assets than purchases.
• B)Financing activities are dominated by borrowing.
• C)Operating activities are the major source of cash.
• D)Net cash provided by operating activities is less than net income.

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Definitions:

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Security Market Line

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APT

APT, or Arbitrage Pricing Theory, is a financial model that estimates the returns on an asset based on its risk in relation to multiple risk factors.

Well-Diversified Portfolio

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