QUESTION $7$

How do financial cash flows and the accounting statement of cash flows differ? Which is more useful when analyzing a company?

appropriate measure of the company's operating performance because of its treatment of interest.

two cash flow statements, the financial statement of cash flows is a more appropriate measure of the company's operating performance because of its treatment of depreciation.

more appropriate measure of the company's operating performance because of its treatment of net income.

QUESTION $8$

market value.

QUESTION $9$

Suppose a company's operating cash flow was negative for several years running. Is this necessarily a good or bad sign?

It's probably not a good sign for an established company, but it would be fairly ordinary for a start$-$up$,$ so it depends.

Negative operating cash flows is a great sign for a mature company because they are investing for future growth of the company.

Positive operating cash flows are an expected sign of a startup company.