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A Financial Statement Analyst Will Look at the Cash Flow

Question 6

Multiple Choice

A financial statement analyst will look at the cash flow statement for all of the following except:


A) If cash flow is significantly larger than earnings, the company may be very conservative in its accounting practices.
B) To determine the depreciation add back.
C) If earnings with amortization added back are significantly larger than cash flow from operations, the company may be maximizing net income.
D) To see if the cash flow statement excludes certain operating expenditures.

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