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MyVeryOwnBiz Inc. has been your business for the past several years. You have put together your cash flow statements for the past 3 years to
MyVeryOwnBiz Inc. has been your business for the past several years. You have put together your cash flow statements for the past years to get a better idea of how your business is managing cash flow. Year ending December Cash flow from operations Cash flow from investing Cash flow from financing Net change in cash Cash, beginning of year Cash, end of year Profit for the year Enter the letter that corresponds to your choice. A B C D E Which section of the cash flow statement is considered the most important? Why? A All the sections are considered equally important. B financing, because it shows how much the company has borrowed C operating, because it is the only sustainable source of cash D Investing, because it shows how much the company has spent on longlived assets E the change in cash, because it shows the yearoveryear difference Which lifecycle stage was the business most likely in back in A startup B growth C maturity D either growth or maturity E decline Which lifecycle stage is the business most likely in by A startup B growth C maturity D either growth or maturity E decline Cash flow from investing activities has gone from negative to positive over the years. Which of the following transactions can cause investing cash flow to increase? A borrowing from the bank B lower depreciation expense C receiving contributions from owners D disposing of longlived assets E lower dividends Cash flow from financing activities has gone from negative to positive over the years. Which of the following transactions can cause financing cash flow to increase? A purchase of longlived assets B a lower income tax rate C disposal of longlived assets D decreased depreciation expense E borrowing from the bank
MyVeryOwnBiz Inc. has been your business for the past several years. You have put together your cash flow statements for the past years to get a better idea of how your business is managing cash flow.
Year ending December
Cash flow from operations
Cash flow from investing
Cash flow from financing
Net change in cash
Cash, beginning of year
Cash, end of year
Profit for the year
Enter the letter that corresponds to your choice. A B C D E
Which section of the cash flow statement is considered the most important? Why?
A All the sections are considered equally important.
B financing, because it shows how much the company has borrowed
C operating, because it is the only sustainable source of cash
D Investing, because it shows how much the company has spent on longlived assets
E the change in cash, because it shows the yearoveryear difference
Which lifecycle stage was the business most likely in back in
A startup
B growth
C maturity
D either growth or maturity
E decline
Which lifecycle stage is the business most likely in by
A startup
B growth
C maturity
D either growth or maturity
E decline
Cash flow from investing activities has gone from negative to positive over the years. Which of the following transactions can cause investing cash flow to increase?
A borrowing from the bank
B lower depreciation expense
C receiving contributions from owners
D disposing of longlived assets
E lower dividends
Cash flow from financing activities has gone from negative to positive over the years. Which of the following transactions can cause financing cash flow to increase?
A purchase of longlived assets
B a lower income tax rate
C disposal of longlived assets
D decreased depreciation expense
E borrowing from the bank
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