In Terms of Funds and Cash Flow Statements

question 19

Multiple Choice

In terms of funds and cash flow statements,

• A) there is a lack of regulation worldwide on their use.
• B) fewer and fewer companies are providing cash flow statements due to the cost of competitive disadvantage.
• C) firms are shifting away from cash flow statements and moving to working capital as a definition of funds.
• D) most countries require cash flow rather than funds statements.

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Definitions:

Consolidated Financial Statements

Financial statements that show the aggregated financial position and results of operations for a parent company and its subsidiaries.

Parent's Control

The influence and authority a parent company holds over its subsidiary's operations and financial decisions.

Subsidiaries

Companies controlled by a parent company through the ownership of more than half of their voting stock or through other means of control.

Available-for-Sale Securities

Debt or equity securities not classified as held-to-maturity or trading securities, measured at fair value, with changes in value recorded in other comprehensive income.