Which of the Following Statements Is Not True Relating to Cash

question 44

Multiple Choice

Which of the following statements is not true relating to cash flow analysis?

• A)Cash return on assets indicates the amount of operating cash flow generated for each dollar invested in assets.
• B)To maximize cash flow from operations,a company strives to increase both cash flow per dollar of sales and sales per dollar of assets invested.
• C)Cash return on assets can be separated to examine two important business strategies: cash flow to sales and asset turnover.
• D)Positive cash flow from operations is not important to a company's survival in the long-run.

Calculate the acquisition differential and its amortization.

Determine the carrying amount of investment accounts after certain transactions.

Understand the effects of share transactions on control and non-controlling interests.

Calculate and describe the effects of share issues and sales on ownership percentages.

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Definitions:

Interest Rates

The proportion of a total amount of money that is levied for its utilization, typically stated on a yearly basis.

Money Supply

The absolute total of money-related assets within an economy at a particular time.

Depository Institutions

Financial institutions that accept deposits from the public and offer lending and other financial services.

Legal Reserve Requirements

Regulations that require banks to keep a certain percentage of their deposits in reserve, either in cash on hand or as deposits with a central bank, to ensure liquidity.