The Statement of Cash Flows Is an Optional Statement

question 7

True/False

The statement of cash flows is an optional statement.

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Definitions:

Net Income

The total earnings of a company after all expenses and taxes have been deducted from revenue, indicating the company's profit.

Other Comprehensive Income

Other Comprehensive Income includes revenues, expenses, gains, and losses that are not included in net income but affect equity, such as unrealized gains on securities.

Shareholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities, representing the owners' claim on the company's assets.

Account Balances

The amount of money in a financial repository, such as a bank account, at any given time.