The Statement of Cash Flows Is Not Useful for

question 147

Multiple Choice

The statement of cash flows is not useful for

• A) planning future investing and financing activities
• B) determining a company's ability to pay its debts
• C) determining a company's ability to pay dividends
• D) calculating the net worth of a company

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Definitions:

Diminishing Marginal Returns

A principle stating that as investment in a particular area increases, the rate of profit from that investment, after a certain point, cannot increase forever and will eventually decrease.

Marginal Product

The additional output that is produced by adding one more unit of a certain input while holding other inputs constant.

Picture Framer

A professional or business specialized in enclosing pictures, photographs, or artwork in frames.

Law of Diminishing Returns

An economic principle stating that as investment in a particular area increases, the rate of profit from that investment, after a certain point, will begin to decrease, assuming all other variables are constant.