The Primary Objective of the Statement of Cash Flows Is

question 289

Essay

The primary objective of the statement of cash flows is to ________.
A)provide information about a company's operating,financing,and investing activities over a period of time
B)disclose changes in all asset and equity accounts over a period of time
C)disclose changes in working capital over a period of time
D)provide information about a company's cash-basis revenue and expenses activities over a period of time

• A)provide information about a company's operating,financing,and investing activities over a period of time
• B)disclose changes in all asset and equity accounts over a period of time
• C)disclose changes in working capital over a period of time
• D)provide information about a company's cash-basis revenue and expenses activities over a period of time

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Definitions:

Spending Variance

The difference between the actual amount spent and the budgeted amount for a particular period or item.

Actual Level

The real, measured level of production, performance, or activity, as opposed to planned or theoretical levels.

Spending Variance

The difference between the actual amount spent and the budgeted amount for a particular category or period, indicating over or under spending.

Planning Budget

A financial plan that estimates the revenue and expenses for a specific period, often used for setting performance expectations.