The Cash Flow Statement Was Added to Reporting Requirements Because

question 15

Multiple Choice

The cash flow statement was added to reporting requirements because it was believed that the income statement and statement of financial position didn't concentrate enough on

• A)profitability.
• B)liquidity.
• C)depreciation.
• D)bad debt.

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Definitions:

Average Wage

The mean earnings of workers in a specific job, industry, or region, often used to compare economic wellbeing.

Dispersed

Spread out or scattered, not concentrated in one area.

Data Distribution

The way in which data points are spread or dispersed across values in a dataset.

Skewness

A measure of the asymmetry of the probability distribution of a real-valued random variable; indicates how the tail on one side of the distribution compares to the tail on the other side.