Which One of the Following Is a Principal Function of the Statement

question 86

Multiple Choice

Which one of the following is a principal function of the statement of cash flows?

• A) To predict future net income
• B) To evaluate management decisions
• C) To evaluate the company's earnings per share
• D) To predict the growth of company assets

---

Definitions:

Ending Inventory

The total value of all the goods remaining unsold at the end of an accounting period.

Cost of Goods Sold

Costs directly connected with the manufacture of goods a company sells, including both materials and workforce expenses.

Beginning Inventory

The value of all the inventory held by a business at the start of an accounting period.

Net Sales

The amount of sales revenue left after deducting sales returns, allowances, and discounts.