The Statement of Cash Flows Is Used for All of the Following

question 83

Multiple Choice

The statement of cash flows is used for all of the following except_____.

• A)showing the relationship of net income to changes in cash
• B)determining a company's ability to pay its debts when they are due
• C)revealing commitments that may restrict future courses of action
• D)evaluating the creditworthiness of the organization

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Definitions:

Clarification

A technique used in counseling and communication to make sure that the speaker's message is understood correctly by asking for more information or for the message to be repeated in a clearer manner.

Paraphrase

The rewording or rephrasing of a text or passage to achieve clearer understanding.

Reflection

The process of thoughtfully considering one's actions, feelings, or experiences, often used in learning or therapeutic contexts.

Summarization

The act of presenting the main points or essence of a larger body of information in a concise form.