If the Following Facts Are Known,which One Would NOT Strengthen

question 99

Multiple Choice

If the following facts are known,which one would NOT strengthen the argument that a company must closely monitor its cash flow?

• A) The company needs to make sure it is not spending too much.
• B) The company needs to generate a lot of revenue.
• C) The company needs to make sure its employees are high performers.
• D) The company needs to make sure it can pay its bills.
• E) The company needs to make sure it can make capital expenditures in a timely fashion.

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Definitions:

Partly Owned Subsidiaries

Subsidiaries that are not wholly owned by the parent company, implying the existence of minority or non-controlling interests.

Ownership Interests

Rights or claims to assets and earnings, often associated with the holding of equity or shares in a company.

Fair Value Method

An accounting approach that assesses the price of an asset or liability based on current market conditions, rather than historical cost.

Goodwill

An intangible asset that arises when a company acquires another company for a price greater than the fair value of its net identifiable assets.