The Statement of Cash Flows

question 170

Multiple Choice

The statement of cash flows

• A)along with the balance sheet and income statement is prepared on the accrual basis.
• B)along with the balance sheet and statement of retained earnings is dated as of a specific year-end date.
• C)along with the balance sheet is used to analyze liquidity.
• D)ties the balance sheet to the statement of retained earnings.

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Definitions:

Lower Deficit

A reduction in the amount by which a government's spending exceeds its revenue.

Raise Taxes

The act of increasing the amount of money the government requires citizens or businesses to pay on their income, property, or purchases.

Social Security Trust

is a fund that holds the financial assets of the Social Security Administration in the United States, used to pay out benefits to retirees, disabled individuals, and survivors.

Federal Budget Deficit

The financial situation where the federal government's expenditures exceed its revenues within a particular fiscal year.