In Addition to the Three Basic Financial Statements Which of the Following

question 43

Multiple Choice

In addition to the three basic financial statements which of the following is also a required financial statement?

• A) the "Cash Budget"
• B) the Statement of Cash Flows
• C) the Statement of Cash Inflows and Outflows
• D) the "Cash Reconciliation"

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Definitions:

Income Statement

A financial document that provides a summary of a company's revenues, expenses, and profits/losses over a specified period of time.

Net Cash

An accounting term that represents the amount of cash remaining after all operating, investing, and financing activities are accounted for in a given period.

Operating Activity

Transactions and events related to the principal revenue-generating activities of an entity.

Investing Activity

Financial actions related to the purchase and sale of long-term assets and investments not included in cash equivalents.