The Statement of Cash Flows

question 89

Multiple Choice

The statement of cash flows

• A)must be prepared on a daily basis.
• B)summarizes the operating, financing, and investing activities of a company.
• C)is another name for the statement of income.
• D)is a special section of the statement of income.

---

Definitions:

Required Return

The minimum profit or yield that an investor expects to receive on an investment, considering the risk involved.

Stock Purchase

The act of acquiring ownership shares in a company, representing a claim on part of its assets and earnings.

Required Return

The minimum expected return an investor demands for an investment, considering its risk and the returns available from other investments.

Dividends

Dividends are payments made by a corporation to its shareholders, usually as a distribution of profits, providing an income stream to investors.