The Primary Purpose of the Statement of Cash Flows Is

question 84

Multiple Choice

The primary purpose of the statement of cash flows is to report

• A) a company's financing transactions.
• B) a company's investing transactions.
• C) information about cash receipts and cash payments of a company.
• D) the net increase or decrease in cash.

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Definitions:

Corporation

A legal entity that is separate and distinct from its owners, recognized by law as having rights and liabilities.

General Partnership

A business structure where two or more individuals manage and operate a business in accordance with the terms and objectives set out in a partnership agreement.

Financial Manager

A professional responsible for managing the financial health of a corporation, focusing on planning, directing investment activities, and developing strategies.