The Statement of Cash Flows Cannot Be Used to Determine

question 178

Multiple Choice

The statement of cash flows cannot be used to determine:

• A)changes in working capital.
• B)expenditures on long-term assets.
• C)profitability as measured by specific revenues and expenses.
• D)reliance on external financing.

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Definitions:

Stock At A Premium

Stock at a premium refers to shares that are sold for a price higher than their par value, often reflecting the issuing company's perceived value and growth prospects.

Income Statement

A financial statement that shows a company's revenues and expenses over a specified period, culminating in the net income or loss for that period.

Retained Earnings

Profits that a company keeps or reinvests rather than distributing to shareholders as dividends.

Cash Available

The total amount of cash or liquid funds a company or individual has accessible for immediate use.