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.

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Definitions:

Employee Benefit

Non-wage compensations provided to employees in addition to their salaries, such as health insurance, retirement plans, and paid time off.

Flexible Benefit Programs

Programs that allow employees to select the mix of benefits and services that will answer their individual needs. Also known as cafeteria benefit programs.

Vacation Time

Allocated time off work provided by employers for employees to rest, travel, or engage in personal activities.

Employee Discount Plans

Benefits offered by employers that allow their employees to purchase the company's products or services at a reduced price.