The Statement of Cash Flows

question 43

Multiple Choice

The statement of cash flows

• A) Is a required statement only for those companies using cash-basis accounting
• B) Provides a connecting link between two consecutive income statements
• C) Is intended primarily to provide necessary information for assessing the profitability of an entity
• D) Summarizes all cash inflows and outflows of an entity for a given period of time

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Definitions:

Normal Distribution

A normal distribution is a bell-shaped frequency distribution curve, where most of the occurrences take place around the central peak, and the probabilities of values further away from the mean taper off symmetrically.

Standard Deviation

Standard deviation is a statistical measure that quantifies the amount of variability or dispersion in a set of data values, indicating how much the individual data points differ from the mean of the data set.

Distribution

The arrangement of values of a variable showing their observed or theoretical frequency of occurrence.

Variation

The occurrence of differences or changes in the characteristics of organisms or objects within a population or set.