Which of the following statements in respect of the cash flows best reflects the reality for Posers?
A) Posers has positive cash flows each year and there is no cause for concern
B) Posers cash flow has declined but it has invested in new fixed assets
C) Posers cash flow has declined and the decline in cash flow from operations is concerning
D) Posers cash flow has declined and the decline in cash flow from operations when taken together with the short term loan is concerning

Question

Which of the following statements in respect of the cash flows best reflects the reality for Posers?
A) Posers has positive cash flows each year and there is no cause for concern 
B) Posers cash flow has declined but it has invested in new fixed assets 
C) Posers cash flow has declined and the decline in cash flow from operations is concerning 
D) Posers cash flow has declined and the decline in cash flow from operations when taken together with the short term loan is concerning

Quizplus · Accepted Answer

The cash flow statement shows a decline in cash flow from operations and an increase in short term loans. This suggests that Posers may be facing some financial difficulties, and the decline in cash flow from operations is particularly concerning as it indicates a decrease in the company's ability to generate cash from its core business activities. Therefore, option D is the best choice as it reflects the reality of Posers' cash flow situation.

Which of the Following Statements in Respect of the Cash