An Objective of the Statement of Cash Flows Is to

question 70

Multiple Choice

An objective of the statement of cash flows is to

• A)disclose changes during the period in all asset and all equity accounts.
• B)disclose the change in working capital during the period.
• C)provide information about a company's operating, investing, and financing activities.
• D)none of these.

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Definitions:

Liability

A legal responsibility or obligation.

Entitlement To Payment

The legal right or claim to receive a specific sum of money.

Dishonor

In legal and financial contexts, dishonor refers to the failure to fulfill an obligation, such as when a check is not honored by a bank due to insufficient funds.

Negotiable Note

A financial instrument containing a promise to pay a certain amount of money, either on demand or at a future date, which is transferable by endorsement.