Cash Flow from Operations That Are Consistently Lower Than Net

question 58

Multiple Choice

Cash flow from operations that are consistently lower than net income may imply that:

• A) a dividend has not been issued in a long time.
• B) the common stock should be split.
• C) the company may be facing a cash shortage.
• D) working capital has decreased.

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Definitions:

Status Quo

Refers to the existing state of affairs or the current condition or situation.

Group Goals

Objectives or outcomes that a collective aims to achieve through coordinated effort and collaboration.

Group Diversity

The presence of varied cultural, social, demographic, or cognitive backgrounds within a team or organization, contributing to a range of perspectives.

Group Cohesiveness

Refers to the bonds or connections among members of a group, leading to feelings of unity and morale.