Which of the Following Is Not a Needed Component for Computing

question 11

Multiple Choice

Which of the following is not a needed component for computing a person's Net Worth?

• A) Parent's financial status
• B) Prior year's net worth
• C) Funds from known sources
• D) Net worth increase

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Definitions:

Cash Receipts

All money (cash, checks, electronic transfers) received by a business, recorded in its accounting system, often associated with sales or other income.

Statement of Cash Flows

A financial statement that provides aggregate data regarding all cash inflows a company receives from its ongoing operations and external investment sources, as well as all cash outflows that pay for business activities and investments during a given period.

Direct Method

A cash flow statement preparation approach that presents the specific cash flows associated with sources and uses of cash.

Merchandise Sold

Pertains to the goods that have been sold to customers by a company during a specific period, often accounted for in the sales revenue section of an income statement.