Which of the following is NOT a situation when it would be important to analyze cash flow information because net income is NOT giving an accurate portrayal of the economic performance of the company?When a company is growing rapidlyWhen a company has several large non-cash expensesWhen a company has a negative operating cash flowWhen a company is striving to present a stellar financial record

Which of the following is NOT correct?The statement of cash flow helps in assessing a company’s ability to:You Answered  Obtain external finance Correct Answer  Operate efficiently   Meet financial commitments as they fall due   Fund changes in nature/scope of its activities

Cash flow analysis is especially important for which of the following?Multiple choice question.small businessesthe state governmentlarge businessesthe federal government

Net Cash Flow to the firm is also considered cash flow coming from _______________.a.Operating activitiesb.Invesying activitiesc.Equity activitiesd.Financing activities

The statement of cash flows cannot be used to determine:Multiple Choicechanges in working capital.expenditures on long-term assets.profitability as measured by specific revenues and expenses.reliance on external financing.

Preparation of the statement of cash flows does not involve:Multiple ChoiceComputing the profit compared to the net increase or decrease in cash.Computing and reporting net cash provided or used by investing activities.Computing and reporting net cash provided or used by financing activities.Computing the net increase or decrease in cash.Computing and reporting net cash provided or used by operations.