Which of the Following Statements May Be the Most Important

question 21

Multiple Choice

Which of the following statements may be the most important in new venture creation?

• A)pro forma balance sheet
• B)income statement
• C)cash-flow statement
• D)profit statement

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Definitions:

Cash Disbursements

Outflows of cash for expenses, payments to creditors, or investments, usually tracked in a cash disbursements journal in accounting.

Payments

Payments refer to the transfer of money from one party to another, often as compensation for goods or services.

Petty Cash Fund

A small amount of cash kept on hand within a business for minor and immediate expenses.

Internal Control

Initiatives and standards implemented by a firm to assure the correctness of financial and accountancy details, encourage integrity, and obstruct fraudulent activities.