In Using the Information on the Statement of Cash Flows

question 49

Multiple Choice

In using the information on the statement of cash flows while obtaining an understanding of a profitable, growing company, which of the following would ordinarily be least surprising to an auditor?

• A) Decreases in accounts payable.
• B) Decreases in accounts receivable.
• C) Negative cash flows from investing.
• D) Negative operating cash flows.

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Definitions:

Qualitative Forecasting Methods

Forecasting techniques based on judgment and opinion, rather than mathematical models, often used when precise data is unavailable.

Causal Forecasting Methods

Techniques that predict future events based on identified relationships between dependent and independent variables, taking into account factors that cause variations in data.

Simulation Forecasting Methods

Techniques that use models to predict future outcomes based on varying inputs and scenarios, helping in decision-making processes.

Collaborative Forecast

A forecast made using input from multiple stakeholders, such as suppliers, customers, and partners, to improve accuracy and planning.