A Purpose of the Statement of Cash Flows May Be

question 114

Multiple Choice

A purpose of the statement of cash flows may be which of the following?

• A)The purpose of the statement of cash flows is to evaluate the decisions made by the board of directors.
• B)The purpose of the statement of cash flows is to determine a company's ability to pay dividends to stockholders and interest and principle to its creditors.
• C)The purpose of the statement of cash flows is to help predict the decisions of its managers.
• D)The purpose of the statement of cash flows is to report the earnings per share

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Definitions:

Policy's Coverage

Refers to the range of protection provided by an insurance policy against various risks or losses.

Defense Against Payment

A legal strategy employed to withhold payment until specific conditions are met or discrepancies are resolved.

Insurance Company

A financial institution that provides coverage by compensating for losses in exchange for premium payments.

Ordinary Action

A common or standard legal action or lawsuit pursued through the regular judicial process to address a grievance or dispute.