Which of the Following Statements Is True

question 115

Multiple Choice

Which of the following statements is true?

• A)The "net change in cash" reported on the statement of cash flows is also reported on the statement of retained earnings.
• B)Both the income statement and the statement of cash flows show the results of a company's operating activities.
• C)The statement of cash flows is for a period of time while the income statement is at a point in time.
• D)The statement of cash flows is at a point of time while the income statement is for a period of time.

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Definitions:

Master Budget

A comprehensive financial planning document that includes all of the subsidiary budgets within an organization, projecting its financial activities for the period.

Raw Materials Production Needs

The quantity and type of raw materials required to meet production schedules for finished goods.

Finished Goods

Products that have completed the manufacturing process but have not yet been sold or distributed to the end consumer.

Raw Materials Cost

The expense associated with the raw materials consumed in producing a finished product.