One Rationale for the Statement of Cash Flows Is To

question 16

Multiple Choice

One rationale for the statement of cash flows is to:

• A) ensure that the cash account balances at year-end.
• B) reconcile differences between net income and cash receipts and disbursements.
• C) calculate the company's free cash flow.
• D) examine the cash effects of income from discontinued operations, extraordinary items and changes in accounting principles.

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Definitions:

Market

A venue or mechanism through which parties engage in the exchange of goods, services, or financial instruments.

Unknown Quantity

A variable or value in a mathematical equation or problem that is not directly known but can be calculated or estimated.

Proportion

A subdivision, quota, or ratio analyzed in respect to its full size.

Unknown Quantity

An undetermined or unspecified value in mathematics that needs to be solved or identified.