Creditors and Analysts Who Attempt to Assess and Predict Future

question 53

Essay

Creditors and analysts who attempt to assess and predict future cash flows tend to prefer earnings measures that are supported by operating cash flows taken from the Cash Flow Statement. What comparisons do they use in assessing the entity's strength in respect of operating cash flows?

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Definitions:

Genes

The basic units of heredity in living organisms, made up of DNA, that carry instructions for the development, functioning, growth, and reproduction of all known living organisms.

Homozygous

A genetic condition where an individual has two identical alleles for a particular gene or trait.

Heterozygous

Having two different alleles of a particular gene, one inherited from each parent.

Sex Chromosomes

Chromosomes involved in determining the sex of an organism, with human males typically having one X and one Y chromosome, and females having two X chromosomes.