The Statement of Cash Flows ________

question 33

Multiple Choice

The statement of cash flows ________.

• A) shows the financial position of a firm at a given point of time.
• B) summarizes all the purchase and sale of fixed assets and raw materials
• C) provides insight into a firm's operating, investment, and financing cash flows
• D) classifies a firm's cash flows as operating, investing, financing, and other activities

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Definitions:

Dividend Payments

The portion of a company's earnings that is distributed to shareholders, usually in the form of cash or additional shares.

Cash Flow

The net amount of cash and cash-equivalents being transferred into and out of a business, reflecting the company's operational, investing, and financing activities.

Financing Activities

Transactions and business events that affect long-term liabilities and equity of a company, including issuance of shares, buyback of shares, and loans taken or given.

Operating Activities

Business activities directly related to the production and delivery of goods and services.