If a Company Has Gaps Between the Change in Cash

question 36

Multiple Choice

If a company has gaps between the change in cash and the net income for the year,

• A)the income statement provides sufficient explanation for the sources of these changes.
• B)the financial statement notes provide explanation for the sources of these changes.
• C)the statement of cash flow provides explanation of the sources of these changes.
• D)the statement of cash flow and balance sheet provide explanation for these changes.

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Definitions:

Digestion

The biological process by which food is broken down into smaller components, eventually to be absorbed into the bloodstream.

Homeostasis

A state of steady internal, physical, and chemical conditions maintained by living systems.

Insulin

A hormone produced by the pancreas that helps regulate blood sugar levels by allowing cells to absorb glucose.

Glucose

A simple sugar and an important energy source in living organisms, part of many carbohydrates.