The Statement of Cash Flows Does Which of the Following

question 151

Multiple Choice

The statement of cash flows does which of the following?

• A) Explains what caused profit during the accounting period.
• B) Identifies all assets held at the end of the accounting period by type and amount.
• C) Explains that the trial balance is in balance.
• D) Explains all the sources and uses of cash during the accounting period.

---

Definitions:

Earning Power

The ability of a company to generate profit from its operations over time.

Stock Portfolio

A collection of stocks held by an individual or institution, designed to achieve specified financial goals.

Bond Portfolio

A collection of bonds held by an individual or institution as an investment strategy to diversify risk and generate income.

Maturity

The final payment date of a loan or financial instrument, at which point the principal (and all remaining interest) is due to be paid.