The Primary Purpose of the Cash Flow Statement Is to Report

question 13

Multiple Choice

The primary purpose of the Cash Flow Statement is to report

• A) a company's investing transactions.
• B) a company's financing transactions.
• C) information about cash inflows and cash outflows of a company.
• D) the net increase or decrease in cash.

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Definitions:

Periodic Depreciation

The method of allocating the cost of a tangible asset over its useful life on a periodic basis, usually annually.

Retroactive Change

A change applied to past periods or transactions in financial records or systems, typically to correct errors or implement new information.

Revised Estimated

Revised estimated refers to the updated projection or calculation of a particular metric, budget, schedule, or plan based on new information or changes in circumstance.

Salvage Value

The calculated end-life value of an asset after its utility period is over.