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The following statements relate to the cash flows topic. Choose all of the statements that are true: The statement of cash flows is essential to
The following statements relate to the cash flows topic. Choose all of the statements that are true: The statement of cash flows is essential to evaluate a business because it is possible to be profitable in the income statement while experiencing cash flow difficulties. Usually if a business upgrades equipment (by selling old equipment and buying new equipment), their Net Cash Flow from Investing Activities will be a positive subtotal in the statement of cash flows. The statement of cash flows is related to information in the balance sheet. It is always preferable if the Net Cash from Financing Activities section of the statement of the cash flows is positive. If Net Cash Flows from Operating Activities is negative, it could be a sign of short-term cash flow concerns
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