The Primary Purpose of the Statement of Cash Flows Is

question 57

Multiple Choice

The primary purpose of the statement of cash flows is to

• A) provide information about the investing and financing activities during a period.
• B) prove that revenues exceed expenses if there is a net income.
• C) provide information about cash receipts and cash payments during a period.
• D) report to Canada Revenue Agency.

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Definitions:

Accompanying Picture

Visual imagery or graphics that are presented along with text or messages to complement or enhance the communication or understanding of the recipient.

Source Derogation

The phenomenon where the credibility or quality of the source of a message is questioned or undermined, often in the context of receiving information that contradicts one’s preexisting beliefs or attitudes.

Knowledge Bias

The distortion of information in favor of a person's pre-existing beliefs or knowledge.

Refutational Arguments

Arguments that are constructed to specifically counter or refute opposing viewpoints, often used in persuasive communication to increase the effectiveness of the message.