The Statement of Cash Flows

question 115

Multiple Choice

The statement of cash flows

• A)is prepared instead of an income statement under generally accepted accounting principles.
• B)is used to assess an entity's ability to pay dividends and meet obligations.
• C)is prepared from comparative income statements.
• D)reflects earnings per share figures on a cash basis and on an accrual basis in the body of the statement.

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Definitions:

Obligation

A duty or commitment that one is bound to by law, promise, or moral responsibility.

Sell

The act of transferring ownership of a security or other asset in exchange for money or value.

Hedge

A hedge is an investment or trade designed to reduce your risk of adverse price movements in an asset, providing protection against losses from price changes.

Bushels

A unit of volume that is used to measure agricultural commodities in the United States.