The Statement of Cash Flows Is

question 44

Multiple Choice

The statement of cash flows is:

• A) Another name for the statement of financial position.
• B) A financial statement that presents information about changes in equity during a period.
• C) A financial statement that reports the cash inflows and cash outflows for an accounting period, and that classifies those cash flows as operating activities, investing activities, or financing activities.
• D) A financial statement that lists the types and amounts of assets, liabilities, and equity of a business on a specific date.
• E) A financial statement that lists the types and amounts of the revenues and expenses of a business for an accounting period.

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Definitions:

Average Daily Float

The average amount of uncollected funds in a bank account over a specified period.

Cheques

A document that orders a bank to pay a specific amount of money from a person's account to the person in whose name the cheque has been issued.

Collection Delay

The period between when a company invoices its customers and when it actually receives payment, affecting the company's cash flow.

Amounts

Quantities or sums of money.