What Is the Purpose of the Statement of Cash Flows

question 206

Multiple Choice

What is the purpose of the statement of cash flows?

• A)It is intended to provide a cash-based view of a company.
• B)It illustrates the profitability of a company.
• C)It reports the financial position of a company at a specific point in time.
• D)It outlines the changes in stockholders' equity accounts from the beginning of the period to the end of the period.

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Definitions:

Maturity Value

The amount payable to an investor at the end of a bond's term or at the time of maturity, including both the principal and interest.

Income Yield

A financial ratio that shows how much a company pays out in dividends each year relative to its stock price.

Capital Gain Yield

The appreciation in the price of an investment, expressed as a percentage of the initial investment cost.

Total Rate Of Return

The overall return on an investment, including both capital gains and income, expressed as a percentage of the initial investment.