The Main Purpose of the Statement of Cash Flows Is

question 149

Multiple Choice

The main purpose of the Statement of Cash Flows is:

• A) determine the change in cash during the period.
• B) list the cash inflows and outflows by meaningful cash flow category.
• C) disclose the quality of earnings.
• D) explain why the balance sheet accounts changed during the year.

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Definitions:

European Union Nations

Countries that are members of the European Union, a political and economic union aimed at promoting integration and common policies among member states.

Euro

The official currency of 19 out of the 27 European Union countries, known collectively as the Eurozone.

Net Exports

The value of a country's total exports minus its total imports; it can be a positive number (trade surplus) or a negative number (trade deficit).

Imports

Products or services imported into a country from another for the purpose of selling or utilization.