The Cash Flow Statement Should Be Evaluated by Examining the Cash

question 40

Multiple Choice

The cash flow statement should be evaluated by examining the cash flow pattern suggested by the:

• A) subtotals of each of the three main sections.
• B) operating activities section since this section details the day to day operations of the business.
• C) change in cash regardless of which section had the biggest impact on the change.
• D) financing section since this section details how much debt the company has incurreD.
• Unlike the income statement, which summarizes its detailed information in one number (net income), the statement of cash flows does not provide a summary measure of cash flow performance. Instead, it must be evaluated in terms of the cash flow pattern suggested by the subtotals of each of the three main sections.

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Definitions:

Large Plantations

Extensive farms in the pre-Civil War South, often where enslaved people were forced to work.

Slave Hiring

A system wherein slaveowners leased out their slaves to work for others, typically for a specified period, with wages paid to the owner rather than the slave.

Southern Mores

Traditional customs, practices, and values specific to the Southern United States, often associated with hospitality and conservatism.

Auction Blocks

Platforms or stages where enslaved individuals were sold to the highest bidder during the period of slavery.