QUESTION 43

1. With regard to assessing the quality of cash-flow statements, which statements are true?

	a.	Estimates and judgments do not usually affect operating cash flows hence the sustainability of a firms operating cash flow cannot be made to appear greater than it really is.
	b.	Analysts can freely compare companies using their cash flows as these are useful tools especially for valuation.
	c.	The first choice and the second choice are both true.