The Statement of Cash Flows Can Be Prepared Using Cash

question 5

True/False

The statement of cash flows can be prepared using cash and cash equivalents rather than just cash, as its base.

---

Definitions:

Option Contract

An agreement that gives the holder the choice, but not the obligation, to buy or sell an underlying asset at a set price on or before a certain date.

Foreign Currency

Currency used in a country other than one’s own, reflecting the economic practices and transactions in foreign nations.

Zero Sum Game

A situation in game theory where one participant's gains or losses are exactly balanced by the losses or gains of the other participants.