The Three Sections of the Statement of Cash Flows Are

question 56

True/False

The three sections of the Statement of Cash Flows are operating activities, investing activities, and financing activities.

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Definitions:

Bank Statement Adjustment

Refers to the changes or corrections made to the balance shown on a bank statement to reconcile it with the company's accounting records.

Company Books Adjustment

The process of making changes to the accounting records of a company to correct errors or reflect updated information.

Internal Control

Internal control comprises the procedures and measures a company undertakes to protect assets, ensure accurate financial reporting, and comply with laws and regulations.

Reasonable Assurance

This concept refers to a high level of assurance or confidence in the accuracy of financial statements and internal controls without guaranteeing 100% certainty.