Common Uses of the Statement of Cash Flows Include All

question 205

Multiple Choice

Common uses of the statement of cash flows include all but which of the following?

• A) Investor assessment of cash flows before buying and selling stock.
• B) Management prediction of future cash flows for decision making.
• C) Management determination of the specific sources and uses of cash.
• D) Creditor evaluation of a company's ability to generate cash to cover debt.
• E) Government assessment of whether company is able to pay taxes as they become due.

Recognize the characteristics and applications of major needs theories.

Analyze scenarios to identify missing elements in achieving personal goals related to motivation.

Understand the significance of maintaining effort and direction in motivation.

Acknowledge the role of motivation in personal and organizational accomplishments.

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Definitions:

Net Realizable Value

The estimated selling price of goods, minus the costs of their completion and disposal.

Present Value

The present value of a future amount of money or series of cash flows, assuming a certain return rate.

Replacement Cost

The current cost of replacing an asset with a new one of similar kind and quality, used in accounting to value assets.