In the Statement of Cash Flows, the Total of Net

question 5

Multiple Choice

In the statement of cash flows, the total of net cash flows from operating activities, net cash flows from investing activities and net cash flows from financing activities for the period equals:

• A)the cash balances at the beginning of the period.
• B)the cash balances at the end of the period.
• C)profit.
• D)total net increase or decrease in cash held for the period.

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Definitions:

Asset Reinvestment

The process of using earnings or profits from an investment to purchase additional assets, aiming to enhance future growth and income.

Financial Statement Analysis

The process of evaluating financial statements and related data to understand the financial health of an organization and make informed business decisions.

Trend Analysis

The practice of collecting information and trying to spot a pattern, often used in technical analysis of financial markets or analysis of historical data in various fields.