The Financial Statement That Reports Cash Receipts and Cash Payments

question 43

Multiple Choice

The financial statement that reports cash receipts and cash payments classified according to the company's major activities of operating, investing, and financing is the:

• A) income statement.
• B) balance sheet.
• C) statement of cash flows.
• D) statement of operating activities.

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Definitions:

IPO

Initial Public Offering, the process by which a private company becomes publicly traded by offering its shares for sale to the general public for the first time.

Public

Relating to or involving the people as a whole; often used to describe companies whose shares are available to be bought and sold by the general population.

Agency Costs

Expenses stemming from conflicts of interest between parties in a corporation, especially between owners and managers.

Stockholders

Individuals or entities that own shares of a company's stock, making them owners of a portion of the company.