Operating Activities: Indirect Method Video Lessons

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Problem: A negative net cash flow from  operating activities: A. indicates the company is selling its assets for more than it cost to purchase them which is a good sign for cash flows B. indicates the company is paying more money to owners and creditors than it is receiving from them C. indicates the company is re-investing in itself in order to grow and expand D. indicates the company had a net loss using the cash basis of accounting E. indicates the company is selling off its long term assets which is not a good sign for financial health

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Problem Details

A negative net cash flow from  operating activities:

A. indicates the company is selling its assets for more than it cost to purchase them which is a good sign for cash flows

B. indicates the company is paying more money to owners and creditors than it is receiving from them

C. indicates the company is re-investing in itself in order to grow and expand

D. indicates the company had a net loss using the cash basis of accounting

E. indicates the company is selling off its long term assets which is not a good sign for financial health

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