An Entity's Net Cash Flow from Operating Activities Is Important

question 60

Multiple Choice

An entity's net cash flow from operating activities is important for users of the statement of cash flows because it:

• A) indicates the entity's ability to generate cash.
• B) represents the entity's cash flows from normal business operations.
• C) indicates that the business is meeting its current obligations.
• D) all of the above options are true.

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Definitions:

Xiphoid Process

The smallest and most inferior part of the sternum, or breastbone, contributing to the definition of the lower boundary of the thoracic cavity.

False Ribs

The lower ribs (usually ribs 8 through 12) that are not directly attached to the sternum but are connected to the true ribs above them by cartilage.

Costal Cartilage

Bars of hyaline cartilage that extend the ribs anteriorly and contribute to the elasticity of the chest wall.

Sternum

A flat bone located in the center of the chest, connected to the ribs via cartilage, forming a major part of the rib cage and protecting vital organs in the thorax.