What is the primary purpose of a cash flow statement?

"To show the company's profits and losses" "To detail the company's assets and liabilities" "To reveal the actual cash generated by the company" "To track the company's stock performance"

Which of the following is NOT considered a financing activity?

"Issuing new shares" "Seeking a short-term loan" "Investing in a startup company" "Paying dividends"

What happens to the cash balance when a company's liabilities increase?

"The cash balance decreases" "The cash balance increases" "The cash balance remains unchanged" "The cash balance fluctuates unpredictably"

Which financial statement reflects the net cash flow number for the year?

"Profit and Loss Statement" "Balance Sheet" "Cash Flow Statement" "Statement of Retained Earnings"

What does a positive cash flow from operating activities indicate?

"The company is in financial distress" "The company is heavily reliant on debt" "The company is financially healthy" "The company is about to be acquired"