The Primary Purpose of the Statement of Cash Flows Is

question 152

Multiple Choice

The primary purpose of the statement of cash flows is to

• A) provide information about the investing and financing activities during the period.
• B) prove that revenues exceed expenses if there is a net income.
• C) provide information about the sources and uses of cash during a period.
• D) facilitate banking relationships.

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Definitions:

Prior Approval

It denotes the necessity to receive authorization before proceeding with an action or decision.

Failure to Delegate

The inability or unwillingness of a person in a leadership or managerial position to assign responsibilities and tasks to others.

Manager's Insecurity

Feelings of doubt or lack of confidence experienced by a manager, potentially affecting decision-making, leadership style, and interaction with subordinates.

Primary Responsibility

The main duty or obligation that an individual or organization is expected to perform or fulfill.