The Purpose of the Cash Flow Statement Is to Provide

question 60

Multiple Choice

The purpose of the cash flow statement is to provide information on:

• A) losses.
• B) cash inflows and outflows.
• C) net worth.
• D) profits.

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Definitions:

Compounded Annually

Interest on an investment calculated once a year, taking into account both the initial principal and the interest from previous periods.

Maturity Value

The amount payable to an investor at the end of a bond's term or at the time of maturity, including both the principal and interest.

Income Yield

A financial ratio that shows how much a company pays out in dividends each year relative to its stock price.

Capital Gain Yield

The appreciation in the price of an investment, expressed as a percentage of the initial investment cost.