Which of the Following Is One of the Purposes of the Statement

question 33

Multiple Choice

Which of the following is one of the purposes of the statement of cash flows?

• A)to predict future Net Income
• B)to evaluate management decisions
• C)to evaluate the company's earnings per share
• D)to predict the growth of a company's assets

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Definitions:

General Ledger

A complete record of all the financial transactions over the lifetime of a company, serving as the primary source of accounting data.

Investing Activities

Deals related to buying and selling long-term assets and investments that are not considered as cash equivalents.

Loss

A financial condition where expenses exceed revenues, resulting in a negative net income for a business.

Sale of Equipment

The process of disposing of business equipment, which is recorded as a financial transaction affecting company assets.