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- Topic: a question about the cash flows
| Author | Topic: a question about the cash flows |
|---|---|
| ryantjk @2015-03-29 19:10:17 |
In the Financial Reporting Questions involving cash flows, some of questions have options such as the “Increased CFO / Decreased CFF / Increased CFI” When the question refers to an "increase" of a cash flow, is it talking about the magnitude or the value? eg: If the cash flow from operations is -1000 this year and last year it was -500, is this an "Increased" CFO? |
| whloh @2015-04-21 21:41:20 |
I think a CFO of -500 last year and a CFO of -1000 this year is a "Decreased CFO". I think it becomes clear if one assumes a CFO of +250 in this year. This is definitely an increase in CFO. However, if one thinks in terms of magnitude, we get a contrary answer. I hope this helps. Thanks. |
