When auditing the statement of cash flows of a profitable, growing company which combination is most likely? $$\begin{array} { | l | l | l | }
\hline & \text { Cash fows from operations } & \text { Cash flows from imesting } \
\hline \text { A. } & \text { Positive } & \text { Positive } \
\hline \text { B. } & \text { Positive } & \text { Negative } \
\hline \text { C. } & \text { Negative } & \text { Positive } \
\hline \text { D. } & \text { Negative } & \text { Negative } \
\hline
\end{array}$$
A) Option A
B) Option B
C) Option C
D) Option D

Question

When auditing the statement of cash flows of a profitable, growing company which combination is most likely? $$\begin{array} { | l | l | l | } 
\hline & \text { Cash fows from operations } & \text { Cash flows from imesting } \
\hline \text { A. } & \text { Positive } & \text { Positive } \
\hline \text { B. } & \text { Positive } & \text { Negative } \
\hline \text { C. } & \text { Negative } & \text { Positive } \
\hline \text { D. } & \text { Negative } & \text { Negative } \
\hline
\end{array}$$
A) Option A
B) Option B
C) Option C
D) Option D

Quizplus · Accepted Answer

A profitable, growing company is likely to have positive cash flows from operations due to its profitability, and negative cash flows from investing as it reinvests earnings into growth opportunities.

When Auditing the Statement of Cash Flows of a Profitable