The Statement of Cash Flows Helps Analysts Evaluate All but Which

question 118

Multiple Choice

The statement of cash flows helps analysts evaluate all but which of the following?

• A)Ability of the company to generate profit.
• B)Source of cash used for plant expansion.
• C)Differences between net income and net operating cash flow.
• D)Source of cash used to finance investing activities.
• E)Source of cash used for debt repayments.

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Definitions:

Special Revenue Fund

A fund used by a government to account for revenue from specific sources that are legally restricted to expenditure for particular purposes.

Capital Projects Fund

A type of governmental accounting fund used to finance and track the costs of major capital improvements and constructions.

Permanent Fund

A fund established to provide a stable source of revenue for specific purposes, often funded by endowments or resources that generate interest or other income.

Agency Fund

An agency fund is a fiduciary account held by a governmental unit that contains resources received and held as an agent for others, to be expended or invested according to the principal's direction.