A Financial Statement That Shows the Cash Inflows and Outflows

question 66

Multiple Choice

A financial statement that shows the cash inflows and outflows of a business is called a/an

• A) Income statement
• B) Common-size financial statement
• C) Balance sheet
• D) Statement of cash flows

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Definitions:

Payback Period

The amount of time it takes for an investment to generate cash flow sufficient to recover its initial cost.

Operating Costs

Expenses associated with the day-to-day operations of a business, including rent, utilities, and payroll.

Purchase Price

The amount paid to acquire a product or service, or the cost at which something is bought.

Salvage Value

The forecasted worth of an asset upon reaching the end of its utility.