The Primary Purpose of the Statement of Cash Flows Is

question 20

Multiple Choice

The primary purpose of the statement of cash flows is to provide information about

• A)the financial position of the company.
• B)the profitability of the company.
• C)the investing and financing activities of the company.
• D)the cash inflows and outflows of the company.

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Definitions:

Sustainable Rate

A rate of growth or extraction that can be maintained over time without depleting resources or causing environmental damage.

Individual Transferable Quotas (ITQs)

Limits (quotas) set by a government or a fisheries commission on the total number or total weight of a species that an individual fisher can harvest during some particular time period; fishers can sell (transfer) the right to use all or part of their respective individual quotas to other fishers.

TAC

Total Average Cost, the sum of all production costs divided by the number of goods produced, indicating the average cost per unit of product.

Arms Race

A competition between two or more parties to have the best armed forces and military technology, often leading to increased military spending and stockpiling of weapons.