CMA Study Group

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  • 1.  CMA Pop Quiz - Q180

    Posted 05-19-2017 10:46 AM

    When using the statement of cash flows to evaluate a company's continuing solvency, the most important factor to consider is the cash

    1. balance at the end of the period.
    2. flows from (used for) operating activities.
    3. flows from (used for) investing activities.
    4. flows from (used for) financing activities.


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    Morgan Greenleaf
    Social Media & Marketing Product Specialist
    IMA
    Montvale NJ
    United States
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  • 2.  RE: CMA Pop Quiz - Q180

    Posted 05-19-2017 02:00 PM
    The answer is 
    4. flows from (used for) financing activities.

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    Chaya
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  • 3.  RE: CMA Pop Quiz - Q180

    Posted 07-06-2017 05:30 AM
    I think the answer should be B. Cash flow from operating activities. Solvency is the ability of a company to meet its debt obligations. And the main sources of paying off debts should be from daily operating activities, not from investing or financing activities.

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    MINH LE DUC CHIEU
    Other
    Orient Software Development Corporation
    HO CHI MINH CITY
    Viet Nam
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