List Three Ways That Owners and Investors Use the Statement

question 34

Essay

List three ways that owners and investors use the statement of cash flows.

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Definitions:

Accounts Receivable

The money owed to a business by its customers for goods or services delivered on credit but not yet paid for.

Balance Sheet Account

An account that appears on the balance sheet, representing a business's financial position at a specific moment, including assets, liabilities, and equity accounts.

Income Statement Account

An account found on the income statement, which includes revenues, expenses, gains, and losses, affecting the net income of a business.

Adjusting Entries

Journal entries made at the end of an accounting period to update the accounting records for expenses and revenues not fully recorded during the period.