Managers Only Use the Cash Flow Statement to Evaluate the Net

question 231

True/False

Managers only use the cash flow statement to evaluate the net cash increase or decrease, and do not pay much attention to the details of cash flows from operating activities, cash flows from investing activities, and cash flows from financing activities.

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Definitions:

Average Revenue

Average revenue is the revenue earned per unit of output sold, calculated by dividing total revenue by the total number of units sold.

Fixed Cost

Fixed costs are business expenses that remain constant regardless of the levels of production or sales, such as rent, salaries, or loan payments.

Variable Cost

Costs that vary directly with the level of production or output.

Continue to Operate

The decision by a company or business to keep running its operations despite various challenges.