The Statement of Cash Flows Is Used for All of the Following

question 116

Multiple Choice

The statement of cash flows is used for all of the following except:

• A) evaluating the creditworthiness of the organization
• B) determining a company's ability to pay its debts when they are due
• C) showing the relationship of net income to changes in cash
• D) revealing commitments that may restrict future courses of action

---

Definitions:

Strain

In sociology, a term referring to the pressure that people feel when they are exposed to social structures that impede the attainment of culturally approved goals.

Social Movement

A collective effort by a large group of people to bring about or resist social change.

Charismatic Leadership

A leadership style characterized by an individual's ability to inspire and motivate followers through their personal charm and persuasiveness.

Organizational Base

Refers to the foundational operations, resources, and structures upon which an organization is built and operates.