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Which of the following statements is more likely to be false? Cash flow is just as important as profit. Depreciation leads to cash flow from
Which of the following statements is more likely to be false?
- Cash flow is just as important as profit.
- Depreciation leads to cash flow from operations being more than profit.
- A profitable company should have a positive cash flow from financing.
- A growing company will probably have a negative cash flow from investing.
Which of the following statements is false?
- Classification by activity provides information that allows users to assess the impact of those activities on the financial position of the entity and the amount of its cash and cash equivalents.
- Cash flow from operating activities is a key indicator of the entitys ability to generate sufficient cash to repay loans, maintain operating capacity, pay dividends and make new investments without recourse to external sources of finance.
- Separate disclosure of investing flows is important because the figure represents the expenditure on resources intended to generate future income and cash flows.
- Separate disclosure of financing flows is important because it helps predict claims on future cash flows by providers of capital.
- None. All are true.
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