A Strong Statement of Cash Flows Indicates That Significant Cash

question 70

Multiple Choice

A strong statement of cash flows indicates that significant cash is being generated by:

• A)Operating activities.
• B)Financing activities.
• C)Investing activities.
• D)Effective tax planning.

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Definitions:

Ordinary Repairs

Expenses for routine maintenance and repairs that maintain the efficient operation of an asset but do not materially extend its life or increase its value.

Hydraulic Lift

A system that uses a fluid-driven mechanism to lift or move objects, often utilized in various machinery and equipment.

Appraised Value

The estimated monetary value of an asset determined by a qualified appraiser based on its condition and market trends.

Par Value

A nominal or face value assigned to a share of stock, often used in accounting to represent the minimum price at which shares can be issued.