The Cash Flow Statement

question 55

Multiple Choice

The cash flow statement

• A) summarizes the operating, financing, and investing activities of a company.
• B) is another name for the statement of earnings.
• C) is a special section of the statement of earnings.
• D) must be prepared on a daily basis.

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Definitions:

Assignee

An individual or entity to whom rights or interests have been transferred by another party.

Statutory Assignment

An assignment that meets certain qualifications and under which the assignee can enforce a claim directly without involving the assignor.

Perished

Refers to goods or property that has been destroyed or has deteriorated to the point where it is no longer usable or valuable.

Lumber

Processed wood used for building and construction purposes.