Which of the Following Is True of the Statement of Cash

question 129

Multiple Choice

Which of the following is true of the statement of cash flows?

• A)It indicates when long-term debt will mature.
• B)It reports on the qualitative behavior of the company's performance.
• C)It covers a specific span of time the same as the income statement.
• D)It shows how the profits or losses of the company were generated.

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Definitions:

Comprehensive Income

A measure of all changes in equity of a company that result from recognized transactions and other economic events of the period, excluding transactions with owners in their capacity as owners.

Net Sales

The revenue generated from goods or services sold by a company after returns, allowances for damaged or missing goods, and discounts are subtracted.

Operating Expenses

Incurred expenses not directly tied to the production of goods or services, such as administrative and sales expenses, that are necessary for running a business.

Depreciation

The method of allocating the cost of a tangible asset over its useful life, reflecting wear and tear, deterioration, or obsolescence.