A Statement of Cash Flows Is Generated to Show

question 154

Multiple Choice

A statement of cash flows is generated to show:

• A) the revenues the company has earned.
• B) the expenses the company incurred during the time period.
• C) the inflow and outflow of cash during the time period.
• D) how profits were generated.

---

Definitions:

Producer Surplus

The discrepancy between the acceptable payment to producers for a good or service and the real compensation they receive.

Consumer Surplus

The variance between the sum consumers are ready and able to spend on a good or service and what they really pay.

Producer Surplus

The gap between the amount producers are prepared to accept for a product or service and the actual payment they get.

Maximum Sum

The largest possible aggregate or total achieved from combining specific elements or numbers.