A Statement of Cash Flows

question 46

Multiple Choice

A statement of cash flows:

• A) is prepared at the option of management
• B) may be combined with the balance sheet
• C) is a basic financial statement required for publicly held companies
• D) may be combined with the statement of retained earnings at the option of management

---

Definitions:

Investment Company

A trust or corporation that focuses on deploying the aggregated investments of individuals into financial securities.

Mutual Fund Assets

The total market value of all financial assets held by a mutual fund.

Equity Funds

Investment funds that primarily invest in stocks, aiming to provide investors with capital growth or income through equity ownership.

Bond Funds

Mutual funds that invest primarily in bonds with the aim of generating income for their investors.