CMA Community / Study Group

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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