The Statement of Cash Flows Will Not Report the

question 162

Multiple Choice

The statement of cash flows will not report the

• A) amount of checks outstanding at the end of the period.
• B) sources of cash in the current period.
• C) uses of cash in the current period.
• D) change in the cash balance for the current period.

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Definitions:

Net Operating Income

The total profit of a company after operating expenses are subtracted, but before deducting interest and taxes.

Return On Investment (ROI)

A metric for assessing how well an investment does by comparing what it returns against what it costs.

Minimum Required Rate

The lowest acceptable rate of return on an investment, as determined by management or investors.

Residual Income

The amount of income that an individual or company retains after accounting for all operating expenses and cost of capital.