One of the Reasons Why Cash Flow Analysis Is Popular

question 5

Multiple Choice

One of the reasons why cash flow analysis is popular is because:

• A)cash flows are more subjective than net income.
• B)cash flows are hard to understand.
• C)it is easy to manipulate, or spin the cash flows.
• D)it is difficult to manipulate, or spin the cash flows.
• E)None of the above.

---

Definitions:

Merger

The combination of two or more companies into a single entity, often to achieve synergies or scale efficiencies.

Divest

The process of selling an asset or business division.

Stock Acquisition

The purchase of a company's shares by another entity, potentially as a strategy for gaining control or a significant stake in the company.

Taxes

Compulsory financial charges or levies imposed by a government on individuals or entities to fund public expenditures.