The Basis of Measurement Used in the Statement of Cash

question 20

Multiple Choice

The basis of measurement used in the statement of cash flows is:

• A) accrual.
• B) current value.
• C) net present value.
• D) cash and cash equivalents.

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Definitions:

Income Increase

A rise in the amount of money generated by an individual or organization, typically measured over a specific period of time.

Dividends in Arrears

Dividends on preferred shares that have not been paid in the timeframe originally scheduled.

Cumulative Preferred Stock

A type of preferred stock that entitles its holders to receive dividends that were missed in the past, before any dividends can be issued to common stockholders.

Dividend Amount

The sum of money paid by a company to its shareholders out of its profits.