Using the Statement of Cash Flows for Decision Making


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When is a company most encouraged to acquire another firm?

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1. What are accounts receivable?

2. When would a company be smart to focus solely on increasing cash flow?

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About This Quiz & Worksheet

Examine the quiz and worksheet, testing your comprehension of how the statement of cash flows is used to make decisions. Terms like accounts receivable and dividends are words you need to be familiar with when you take the quiz.

Quiz & Worksheet Goals

Use these materials any time to check your understanding of:

  • What dividends are
  • Accounts receivable
  • The best time for a company to focus on increasing cash flow
  • When a company is most encouraged to acquire another firm
  • An ideal time for a company to seek to pay a dividend

Skills Practiced

  • Reading comprehension - ensure that you draw the most important information from the lesson on cash flow statements and decision making
  • Defining key concepts - make sure that you can accurately define main topics, such as accounts receivable and dividends
  • Information recall - access the knowledge you have gained about when a company is most influenced to buy another firm

Additional Learning

Gain even more knowledge about these statements by working through the lesson called Using the Statement of Cash Flows for Decision Making. Objectives you'll get to cover include:

  • Understand what a cash flow statement is
  • Examine how dividends are distributed
  • Look at an example of a cash flow statement