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

question 139

Multiple Choice

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

• A) To predict future profit growth
• B) To calculate the turnover of inventory
• C) To evaluate the level of debt and leverage of a company
• D) To predict the ability to pay debts and dividends

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Definitions:

Industrial Nations

Countries characterized by significant industrial activity, having a large part of their economy involved in manufacturing and technology.

Collective Bargaining

A process of negotiation between employers and a group of employees aimed at agreements to regulate working salaries, working conditions, benefits, and other aspects of workers' compensation and rights.

Strike

When a collective bargaining agreement cannot be reached, a union calls for a work stoppage to last until an agreement is reached.

Employer

An employer is an individual or organization that hires and pays for the services of workers to perform specific jobs.