Why is the statement of cash flows important?
What will be an ideal response?
The statement of cash flows shows how efficiently management generates and uses cash. It shows whether all the revenues booked on the income statement have actually been collected. This information is useful to creditors who are interested in determining a company's short-term health, particularly in its ability to pay its bills. In addition, it signals to investors whether the business is generating enough money to buy new inventory and to make investments in the business. Accounting personnel, potential employees, or contractors may be interested in cash flow information to determine whether a company will be able to afford salary and other labor obligations.
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Amazon.com was the earliest, major online bookstore, which allowed it to generate brand awareness and have a significant presence in the market. Amazon.com had a head start on later entrants to the online bookstore market. In this example, Amazon.com has _____ advantages
a) vertical integration b) first mover c) horizontal integration d) free rider
Pricing strategies tend to change and evolve as the average product passes through its life cycle
Indicate whether the statement is true or false