The Statement of Cash Flows Shows the Net Effect of Revenues

question 42

True/False

The statement of cash flows shows the net effect of revenues and expenses for a reporting period.

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Definitions:

Prior Period Adjustments

Corrections of errors in previously issued financial statements for periods that have already been reported.

Retained Earnings

The portion of a company's net income that is kept within the company rather than distributed to shareholders as dividends.

Net Income

After-tax and expense deductions from total revenue, the remaining profits of a company.

Cash Dividends

Cash distributions given by a company to its stockholders out of its earnings.