Management Would Not Use the Statement of Cash Flows to

question 35

Multiple Choice

Management would not use the statement of cash flows to

• A)assess the liquidity of the business.
• B)determine dividend policy.
• C)evaluate the effects of major policy decisions involving investments and financing.
• D)determine the financial position of the company.

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Definitions:

Residential Structure

A building designed for people to live in, which includes houses, apartments, condos, and other dwellings.

Investment

The allocation of resources (money, effort, time) into assets with the expectation of earning a profit.

GDP

A country's economic activity is measured by its Gross Domestic Product, which aggregates the total value of goods and services made during a particular time.

Net Investment

The total amount spent on new capital assets minus the depreciation on existing capital assets.