One of the Purposes of the Statement of Cash Flows

question 132

Multiple Choice

One of the purposes of the statement of cash flows is to ________.

• A) determine the operating income of a business
• B) calculate inventory turnover
• C) evaluate the level of debt and leverage of a company
• D) predict the ability of a company to pay debts and dividends

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Definitions:

Basic Research

Fundamental research aimed at gaining more comprehensive knowledge or understanding of the subject under study, without specific applications in mind.

Applied Research

A form of systematic inquiry involving the practical application of science. It accesses and uses some part of the research communities' (the academia's) accumulated theories, knowledge, methods, and techniques, for a specific, often state-, business-, or client-driven purpose.

Practical Problems

Issues or challenges that arise in everyday life requiring practical solutions.

Biological Approach

A perspective in psychology that emphasizes the influence of genetics, brain structures, and biochemical processes on behavior and mental processes.