On a Statement of Cash Flows,which of the Following Is

question 12

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:

WARP

The Weak Axiom of Revealed Preference (WARP) is a criterion used to check for consistency in consumer choice behavior under the assumption of rationality.

Bundle

A set of goods or services sold together as a single package.

Revealed Preferences

An economic theory that determines consumer preferences by observing their purchasing behavior rather than through direct inquiry.

Francs

A currency unit formerly used in France and some other countries, and still used in some territories.