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:

Estimate

To make an approximate judgment or calculation of the value, number, quantity, or extent of something.

Winner's Curse

A phenomenon that occurs in auctions where the winning bidder pays more than what the item is actually worth, usually because of incomplete information or misjudgment.

Common-value Auction

an auction format where the item for sale is of the same value to all bidders, but the bidders have different information about the item's actual value.

Too Optimistic

Pertains to a situation or mindset where expectations are unrealistically positive, potentially overlooking possible risks or challenges.