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.

---

Definitions:

Cerebral Hemispheres

The two sections of the cortex on the left and right sides of the brain.

Cerebrum

The upper part of the brain consisting of the two hemispheres and the structures that connect them.

Upper Part

The higher section or portion of an object, area, or body.

Cortex

The outer layer of the cerebrum of the mammalian brain, involved in higher brain functions such as thought and action.