The Statement of Cash Flows May Be Viewed in Terms

question 3

Multiple Choice

The statement of cash flows may be viewed in terms of the balance sheet equation.Which of the following expressions below is correct?

• A)Change in Cash = Change in (Liabilities + Stockholders' Equity − Noncash Assets)
• B)Change in Cash = Change in (Stockholders' Equity − Liabilities + Noncash Assets)
• C)Change in Cash = Change in (Liabilities − Noncash Assets)
• D)Change in Cash = Change in (Stockholders' Equity − Liabilities)

---

Definitions:

Plantation Owners

Individuals or entities that owned large agricultural estates primarily in the Southern United States, often worked by enslaved people before the Civil War.

Crop-Lien System

A credit system that existed in the Southern United States post-Civil War, where farmers, many of whom were sharecroppers, secured loans against future crop yields, often leading to debt and economic bondage.

Sharecroppers

Individuals who farm land owned by another and pay rent either in cash or shares of the crop, a system that emerged in the American South after the Civil War.

Constant Debt

A situation where an individual, organization, or country continually carries a financial obligation without significant reduction over time.