The Financial Statement That Explains How a Firm's Cash Changed

question 28

Multiple Choice

The financial statement that explains how a firm's cash changed from the beginning of the accounting period to the end is called the

• A) statement of cash flow.
• B) balance sheet.
• C) income statement.
• D) master budget.
• E) profit-loss statement.

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Definitions:

Minimum Cash Balance

The lowest amount of cash that a company or individual aims to hold in order to meet operational and transaction needs.

Net Operating Income

The profit generated from a business's core operations, excluding expenses and revenues from non-operating activities.

Estimated

Refers to approximate calculations or judgments about figures or values that are not precisely known.

Finished Goods Inventory

Inventory that consists of items that have completed the manufacturing process but have not yet been sold to customers.