Explain the value of separating cash flows into operating activities, investing activities, and financing activities to financial statement users in analyzing cash flows and the company's financial performance and condition.
What will be an ideal response?
By separating cash flows into three categories, the statement of cash flows allows users to focus their analysis on specific areas of importance. The operating section of the statement reveals the net effect of cash inflows and cash outflows from the core activities of a business which directly affect its operating income. Operating cash flows indicate the health of a business. A business with a declining or negative amount of cash from operating activities may be in financial difficulty. Analysis of the financing section reveals to financial statement users how a business raises funds from the outside. Analysis of the investing activity section reveals whether or not a firm is acquiring new assets and disposing of existing assets and thus investing in the future of the company.
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When using a cost-based approach, once the cost of a good or service has been determined, additional factors need not be considered in establishing a selling price
Indicate whether the statement is true or false
The basic assumption of standardization
A. can be seen to contradict the basic marketing principle. B. operationalizes the primacy of the consumer. C. addresses the tension between need and desire. D. is that markets like consumer goods.
Changes in which phase of the MPS will be the least disruptive?
A. frozen time fence B. slushy time fence C. flexible time fence D. not disruptive in any phase
Agatha is appearing for her third and final interview with a casting agency. The interview is being conducted by the head of the agency, Mr. Porter. Once the interview is over, Mr. Porter will make the decision about her employment. In this scenario, Agatha's interview with Mr. Porter is a:
A. panel interview. B. committee interview. C. group interview. D. one-on-one interview.