The Statement of Cash Flows and the Statement of Financial

question 84

Multiple Choice

The statement of cash flows and the statement of financial position are interrelated because

• A) the ending amount of cash on the statement of cash flows must agree with the amount on the statement of earnings.
• B) the ending amount of cash on the statement of cash flows must agree with the amount in the statement of changes in equity.
• C) the ending amount of cash on the statement of cash flowsmust agree with the amount in the statement of financial position.
• D) both disclose the corporation's profit.

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Definitions:

Majority Shareholder

A Majority Shareholder is an individual or entity that owns more than 50% of a company's shares, thereby having significant influence or control over company decisions.

Common And Preferred

Types of stock in a corporation; common stock typically grants voting rights, whereas preferred stock offers dividends priority.

Shareholders

Individuals or entities that own shares in a corporation and have potential voting rights and dividends.

Surviving Corporation

The entity that continues to exist after the merger or consolidation of two or more corporations, absorbing the assets and liabilities of the other entities.