The Statement of Cash Flows and the Statement of Financial

question 110

Multiple Choice

The statement of cash flows and the statement of financial position are interrelated because:

• A) both disclose the corporation's profit.
• B) the ending amount of cash on the statement of cash flows must agree with the amount in the statement of financial position.
• C) the ending amount of cash on the statement of cash flows must agree with the amount on the income statement.
• D) the ending amount of cash on the statement of cash flows must agree with the amount in the statement of changes in equity.

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Definitions:

Bonds

Fixed-income investment products that represent loans made by an investor to a borrower, typically corporate or governmental, which is obligated to pay back with interest.

Comprehensive Income

The total change in equity for a reporting period other than from transactions with owners, encompassing all revenues, gains, expenses, and losses.

Net Income

The total earnings of a company after subtracting all expenses, taxes, and losses from total revenue.

Retained Earnings

The portion of a company's profits that is kept or retained and saved for future use, reinvestment, or to pay debt.