In the Context of Cash Flow Statements and Budgets, for a New

question 42

Multiple Choice

In the context of cash flow statements and budgets, for a new entrepreneurial firm, what is a benefit of separating cash inflows on a cash flow statement into as many categories as possible?

• A)It aids in analyzing the actual revenue sources for the firm.
• B)It reduces the firm's taxable income on paper.
• C)It identifies weaknesses in the firm's supply chains.
• D)It reduces the firm's vulnerability to undesirable market conditions.

---

Definitions:

Tariff

A tax imposed by a government on goods and services imported from other countries.

Imports

Imports are goods or services brought into one country from another for sale, usually regulated by the government with tariffs, quotas, or trade agreements.

Buyers

Individuals or entities that purchase goods or services for personal use, resale, or production.

Sellers

Individuals or entities that offer goods or services in exchange for compensation.