Which One of the Following Items Is Not Necessary in Preparing

question 214

Multiple Choice

Which one of the following items is not necessary in preparing a statement of cash flows?

• A) Determine the change in cash
• B) Determine the cash provided by operations
• C) Determine cash from financing and investing activities
• D) Determine the cash in all bank accounts

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Definitions:

Retained Earnings

The part of a company's earnings that is not distributed as dividends but is instead held back by the company.

Dividend Growth

The increase in the dividend payout issued by a company over time, reflecting its growing earnings or cash flow.

Flotation Costs

Costs borne by a firm for the release of new stocks, encompassing fees for underwriting, legal advice, and registration.

New Equity

Funds raised by a company through the issuance of common stock to the public or private investors.