The Third (Final) Step in Preparing the Statement of Cash

question 91

Multiple Choice

The third (final) step in preparing the statement of cash flows is to

• A) analyze changes in non-current asset and liability accounts.
• B) compare the net change in cash with the change in the cash account reported on the statement of financial position.
• C) determine net cash provided by operating activities.
• D) list the non-cash activities.

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Definitions:

Minimum Wage Laws

Legislation that sets the lowest hourly rate that employers can legally pay their employees.

Unemployment Levels

The proportion of the labor force that is jobless and actively seeking employment.

Price Level

An indication of the average prices of goods and services in an economy at a specific time, often used to measure inflation.

Nominal Wages

The amount of money paid to an employee before adjustments for factors like inflation, not reflecting the real purchasing power of the income.