Which option would not be revealed by a company's statement of cash flows? Select one: a. Whether the company has exceeded its overdraft limit during the year b. How the company has managed its working capital over the last financial year c. Whether the company has raised extra long-term funding during the year d. Whether the company has paid a dividend during the year

Which option would not be revealed by a company's statement of cash flows? Select one: a. Whether the company has exceeded its overdraft limit during the year b. How the company has managed its working capital over the last financial year c. Whether the company has raised extra long-term funding during the year d. Whether the company has paid a dividend during the year

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter1: Accounting And The Financial Statements

Section: Chapter Questions

Problem 5MCQ

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Question

Which option would not be revealed by a company's statement of cash flows?

Select one:

a. Whether the company has exceeded its overdraft limit during the year

b. How the company has managed its working capital over the last financial year

c. Whether the company has raised extra long-term funding during the year

d. Whether the company has paid a dividend during the year

Definition Definition Net amount of cash that an entity receives and expends over the course of a given period. For a business to continue operating, positive cash flows are required, and they are also necessary to produce value for investors. Investors in particular prefer to see growing cash flows even after capital expenditures have been paid for (which is known as free cash flow).

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