The Statement of Cash Flows Explains the Difference Between the Beginning

question 7

True/False

The statement of cash flows explains the difference between the beginning and ending balances of cash and cash equivalents.The statement of cash flows explains the change in cash and cash equivalents from operating,investing and financing activities.

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Definitions:

Opportunity Cost

The cost of forgoing the next best alternative when making a decision or investment.

Economic Profits

Profits exceeding the opportunity costs of all resources employed, reflecting a return beyond the normal profit level.

Economic Costs

The total value of all the resources used in the production of goods or services, including both explicit and implicit costs.

Economic Profit

The difference between total monetary revenue and the total costs of inputs (including opportunity costs), representing the financial gain exceeding the economic opportunity lost.