When Analyzing the Statement of Cash Flows, Which of the Following

question 49

Multiple Choice

When analyzing the statement of cash flows, which of the following statement are true?

• A) Cash has no effect on the success of the company.
• B) Cash is ignored when analyzing a company.
• C) An excess of cash is the sign of a healthy company.
• D) A company with a large cash balance is ensured success.

---

Definitions:

Lower-Level Objectives

Specific, measurable goals set at a lower hierarchy within an organization, aimed at supporting higher-level strategic objectives.

Quantify

To measure or express something as a numerical value.

Verifiable Work Activities

Tasks or duties that can be proven or confirmed through evidence or testimony to have been completed.

Management By Objectives (MBO)

A strategic management model that aims to improve the performance of an organization by clearly defining objectives that are agreed upon by both management and employees.