What Does a Statement of Cash Flow Describe

question 109

Multiple Choice

What does a statement of cash flow describe?

• A) Gross profit compared to operating expenses
• B) Value of revenues compared to cost of revenues
• C) Yearly receipts and cash payments
• D) Cost of obtaining materials needed to produce products
• E) Funds that flow into the business from the sale of the goods or services provided

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Definitions:

Golden Parachute

A substantial financial package granted to a corporate executive upon termination, often after a takeover or merger.

Target Corporation

The object of a tender offer.

Hostile Bidder

An entity or individual that makes a takeover bid for a company despite resistance or disapproval from the target company's board.

Shares

Portions of a corporation that may be owned by the various shareholders.