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:

Self-Efficacy Theory

The belief in one's own ability to succeed in specific situations or accomplish a task, playing a crucial role in determining how goals are set and achieved.

Confidence

A feeling of self-assurance arising from an appreciation of one's own abilities or qualities.

Competence

The ability of an individual or organization to perform a task effectively, with the required skills and knowledge.

Goal-Setting Theory

A psychological theory that suggests specific and challenging goals along with appropriate feedback contribute to higher and better task performance.