The Primary Purpose of the Statement of Cash Flows Is

question 58

True/False

The primary purpose of the statement of cash flows is to provide information about a company's cash receipts and cash payments during an accounting period.

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Definitions:

Cash Drawer

A small drawer in a cash register or point of sale system used for storing cash and other payment media during business operations.

Authorized Signing Officer

is an individual granted the authority by an organization to sign official documents on behalf of the company.

Supporting Documentation

Documents that provide evidence of transactions and can include receipts, invoices, contracts, and bank statements.

Control Activity

A policy or procedure that is part of the internal control framework designed to address specific risks and help ensure the achievement of an organization's objectives.