What Is the Purpose of the Statement of Cash Flows

question 162

Multiple Choice

What is the purpose of the statement of cash flows?

• A) It is intended to provide a cash-based view of a company.
• B) It illustrates the profitability of a company.
• C) It reports the financial position of a company at a specific point in time.
• D) It outlines the changes in stockholders' equity accounts from the beginning of the period to the end of the perioD.
• The statement of cash flows shows each major type of business activity that caused a company's cash to increase or decrease during the accounting perioD.

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Definitions:

Matrix

A rectangular array of numbers organized into rows and columns, used in linear algebra.

System of Linear Equations

A set of equations with multiple variables that are linear, where the goal is to find values for the variables that satisfy all equations simultaneously.

Cramer's Rule

A mathematical theorem used to solve systems of linear equations with the same number of equations as unknowns, using determinants.

System of Linear Equations

A group of one or more linear equations that share a common set of variables.