The Managerial Report That Shows Planned Cash Inflows and Outflows

question 45

Multiple Choice

The managerial report that shows planned cash inflows and outflows for major investments or acquisitions is the

• A) journal voucher list.
• B) statement of cash flows.
• C) operating budget.
• D) capital expenditures budget.

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Definitions:

Fair Value

The financial sum expected to be received for an asset's sale or needed to transfer a liability, within a systematic deal involving market entities, on the date it is assessed.

Goodwill

The intangible asset that arises when a company acquires another business for a price higher than the fair value of its net identifiable assets.

Business Combination

The process of joining two or more companies into a single entity, often to expand market share, diversify, or achieve other business objectives.

Outstanding Shares

The total number of shares of stock that are currently owned by all shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s insiders.